SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mike Johnston who wrote (86571)9/19/2007 5:29:11 PM
From: GST  Read Replies (2) of 110194
 
Actually, Mish has never come close to grasping the global dimension of the US economy, and so his deflationary "assessment" is made in a vacuum. Not only are we not in a deflation, we are embedded in an inflationary cycle that threatens to spin out of control as the US economy slows and the dollar falls. Housing is not the bubble to worry about -- it is the pinprick -- the balloon is the dollar, and as the air comes out of the dollar, the odds of "deflation" are extraordinarily low. The mother of all bubbles is the dollar -- and the dollar is the essence of runaway inflation. Housing prices can go to zero and not change this one bit -- on the contrary, the bursting of the housing bubble weakens the dollar and adds to inflationary pressures.

Mish is myopic and as a result has it all backwards, and that is why following his "advice" would be unhelpful.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News