Bubble TroubleWith short-term rates effectively at zero Federal Reserve Chairman Ben Bernanke and other policymakers are considering buying Treasury bonds in an effort to reduce longer-term borrowing costs. According to Bloomberg Bernanke hinted at this possibility in a speech he gave on December 1 and although he didn’t specify maturities some believe the purchases will focus on securities with 3- to 6-year terms. To be clear the Fed has always bought Treasury debt as part of its day-to-day management. What's different is that the central bank is now intentionally trying to manipulate prices - a move that could lead to increased speculation and volatility. ...