The deeper question is whether central banks truly have the will to stay

the course that they now appear to be on. In my serial bubble

view of the world, the moral hazard dilemma has been

compounded over the years -- making it riskier for central

banks to turn off the liquidity spigot today than it was in 1994,

1998, and even 2000. To me, this is the modern day

equivalent of 1979 -- when one central banker (Paul Volcker)

had the courage and political independence to do the

unpopular thing and go after CPI inflation. Today the

inflation. This is the gut check that could make or break

central banking for years to come.

-Stephen Roach, Chief Economist (Morgan Stanley); June 2006