Haim, inflation is not the deal here, we are going into a deflationary period of overcapacity and pricing pressures as already evidenced by the leading edge computer industry, which is now eating the chippies and dd's and will soon bite the boxmakers. Only the cream of the crop of each group are mo mo'in and Dell has 1.8 bill shareholder equity with a 74 bill market cap - makes you want to scream, and this bozo Dell is telling his shareholders that they will be richly rewarded to buy and hold.
Forget inflation, the inflation peak was 1980! This has even the "greatest financial mind of our times" Greeny even confused. He's either lying to the public or a complete fool.
What we have is an irrational exhuberant build-up of worldwide capacity because goldilocks economy was going to bring the Dow to 35,000 in a few years, NOW A 1/4 OF THE WORLD ECONOMY IS BROKE, BUSTED, CHAPTER 11, and the list of the down and out looking for IMF money seems to be growing each week.
Easy free credit has built up a massive manufacturing facility in Asia that has the capacity to build products in months that will take years to utilize.
One of reasons for the recent hit in the airlines was that fear the the coming glut of new planes being put in service would create pressure on earnings.
Galbraith sezs the financial mind is short term. They can barely remember 10 years. This is a phenomenon that repeats itself with quite reqularity about every 60-70 years.
Deflation - not inflation, just look at the CRB.
That uptick in rates is probably broke foreigners starting to repatriot. Once they pull the rug out there, Greeny will most definately lower rates.
bwdik,
bb |
