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Non-Tech : Deflation

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To: Maurice Winn who wrote (64)7/26/2001 3:34:10 AM
From: JF Quinnelly  Read Replies (1) of 621
 
If you're printing money at full speed (well, cutting rates as fast as you can), and there's no sign of inflation-- or any upturn in business activity-- then I think there must some pretty strong deflationary forces at work.

I wonder if the Fed erred in raising rates- the market bubble would have popped anyway, and the two effects combined really eliminated a lot of buying power. Now there's not enough buying power to keep the economy humming, and cutting rates isn't going to put wealth back in the pockets of investors who crashed and burned.
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