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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: John Vosilla who wrote (66396)7/19/2006 8:16:37 PM
From: mishedlo  Read Replies (1) of 110194
 
Why does the end game has to be deflation or hyperinflation? I guess they both sound so much sexier and generate much more interest than stagflation and a persistent squeeze on working Americans.

Because it's not different this time.
Stagflation lead to disinflation and a huge stock market boom.

stagflation last time created a wage price spriral up.
There are no such forces this time.

So I guess I am saying on one hand things are the same and on the other things are different but we simply are not going to stay in stagflation forever (if that is what we are in). It will break and given outsourcing and wages and real estate busting, there is only one direction it can break in. down as in deflation

Mish
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