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Politics : Formerly About Advanced Micro Devices

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To: Tenchusatsu who wrote (528473)11/12/2009 11:51:28 PM
From: tejek  Read Replies (1) of 1574776
 
Ted, the market is forward-looking. Plenty of investors think like I do and are betting on the inevitable, that inflation will rise.

The other possibility is a liquidity trap, but I think the dynamics of the American economy are much different than those of Japan.


When expectations are slanted a particular way, the market has a tendency to disappoint those expectations. Many people are thinking like inode.......this is a typical recession. As the economy revs up, inflation will rear its ugly head esp. with all the liquidity thrown into the market. However, this has not been a typical recession. It went much deeper for much longer and unemployment is very high and factory utiliation very low. Its very likely the recovery will be very slow and long. That means the Feds will have plenty of time to counter any inflationary aspects they may see down the road.
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