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

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To: aryana who wrote (71073)10/5/2006 12:35:35 PM
From: mishedlo  Read Replies (1) of 110194
 
With energy prices stabilizing there is a chance that asia will become a net exporter of deflation. The case can be made that it is happening now. The problem is there is nothing we can do about it anyway. We can't control the situation by tweaking the fed funds rate. That path only leads to bubbles and
their aftermath.

I feel that the fed is trying not to achieve a balance between inflation and deflation (which they cannot control anyway) but a balance between dangerous bubbles and crashing the economy
which has become increasing reliant on such bubbles. Good luck B.B. I wouldn't want your job.


Pretty much agree except I do not believe the Fed is fully aware of the problems (at least to the extent things could get out of hand), nor do they see themselves as part of the problem IMO.

The Fed has been a huge part of the problem

Mish
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