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

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To: sea_biscuit who wrote (90710)1/22/2008 1:08:00 PM
From: John Vosilla  Read Replies (2) of 110194
 
'It is downright stupid to say that prices will fall in terms of something that the Fed has virtually promised to produce in trillions, even quadrillions if need be.'

The stock market performance has nothing to do with deflation. In the 1970's we had several crashes. The squeeze on the American consumer and the housing armaggeddon due to lax lending and overbuilding is what is real.. Coming out of all this the inflationary pressures will be worse because our leaders refuse to allow a real recession and continue to run massive deficits and debase our currency. Ben Stein had a great article the other day where our worst recessions in the modern era were due to efforts to fight inflation. What is going on today will be a piece of cake to get out of as long as perceived inflationary pressures are moderate and long term rates so low during this down cycle.
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