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Politics : Formerly About Advanced Micro Devices
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To: Road Walker who wrote (374458)3/18/2008 5:43:33 PM
From: tejek  Read Replies (1) of 1573798
 
Its not possible to have stagflation while housing is in a deflationary mode. Housing is the biggest asset of most Americans. It plays a pivotal role in our economy. Either housing prices will start to increase again, or inflation will dissipate. It pretty much has to be one or the other.

However, if inflation starts to be a problem, the Fed could be caught in the grips of stagflation, the malady of stagnant growth occurring at the same time that inflation is rising.
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