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Strategies & Market Trends : John Pitera's Market Laboratory

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To: macavity who wrote (5173)12/2/2001 1:33:54 AM
From: macavity  Read Replies (1) of 33421
 
..and another thing!



Perhaps some would argue that this is today “deflation,” but such analysis is, at best, inadequate. It is critical to appreciate that uncontrolled domestic and global credit systems have for too long been locked in dynamic processes fueling sector booms and busts, and it is just nonsensical to refer to the unavoidable busts as “deflation.” Sector busts should be differentiated, as the inevitable consequences of previous Credit inflation and not “deflationary” forces to be rectified by lower interest rates, more “liquidity,” and additional runaway monetary expansion.


prudentbear.com
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