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Strategies & Market Trends : ahhaha's ahs

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To: ahhaha who wrote (2243)5/15/2001 3:22:07 PM
From: ahhahaRead Replies (2) of 24758
 
I hope no one thinks the FED action is bullish, since they do it because they haven't been able to revive falling final demand adequately by their previous actions. What they are doing is propping prices which exacerbates the effective cost of production with an attendant slowing ability to get revenue to pay those effective rising costs. So their pumping is accelerating effective deflation! I had said this some months ago in my remarks that interventionism causes prices to rise more than output. The equivalent notion is that interventionism causes profits to fall faster than prices.
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