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Politics : Ask Michael Burke

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To: Mike M2 who wrote (69423)10/22/1999 1:30:00 PM
From: valueminded  Read Replies (1) of 132070
 
William:

There is only one force to be reckoned with. The FEDS extremely easy money policy. Your other "two forces" are byproducts of easy money. Corporations will not borrow or be allowed to borrow if money gets too expensive.

What I dont understand is how you can be exactly in tune with the FEDs direction and conclude this will end in delfation. It just wont happen. The FED is behind and will stay behind the curve. There is no way that they will "get ahead of the curve" and be blamed for a market crash. They just wont do it.
Now the bond buyers are a different story. As they lose more and more money they will force up rates by either a lack of buying or they wont have money left to buy. Either way, without massive destruction of money through a crash, we will not see deflation.
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