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

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To: LTK007 who wrote (101088)2/10/2009 11:31:35 AM
From: studdog2 Recommendations  Read Replies (1) of 110194
 
<<But they want desperately to get it running, again, why?>> If you live in the world you better hope they get it running again to some degree. They are scared because they know the devastating consequences of a deflationary spiral and don't think our populace will stand for the consequences. They have got to buy time with unemployment benefits, make work schemes, and tax cuts so we don't riot in the streets before time and deleveraging cure the system. This stimulus and the antics of congress are meant to just entertain us. The real cure will be active dollar devaluation by Fed monetization and deleveraging by the private sector. They've got to get it running again at least a little bit before the devaluation. Just like 1933. Their hope is to avoid 25% unemployment, breadlines and despair.

Read Dalio in this weeks Barron's and recent comments by Kasriel.

SD
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