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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (2008)	11/10/2003 1:51:44 AM
From: Andrew	Read Replies (2) \| Respond to of 110194

I'd say it looks like the FED is caught between a rock and a hard place. Problem is that even with all this there are inflationary pressures. Price of food and energy and most commodities are rising. The one straight thing I heard come out of AG's mouth about 6 months ago was that the reason we weren't seeing a robust recovery was that they lowered interest rates so quickly and injected so much liquidity that there wasn't really a deep recession. In effect the FED was late and too lax in raising before the stock bubble and then instead of hitting the reset button properly are trying to fight the bust tooth and nail. These low rates have kept the housing boom going, and brought in buyers that weren't really qualified through creative financing creating a short term fix that has fueled a real estate bubble that may be bigger than the stock market bubble was. It seems to me that in the long run more wealth is going to be evaporated now because of the FED's failure to reset the economy. prudentbear.com prudentbear.com prudentbear.com The big question for me is how will a mix of inflation and deflation effect the price of gold short and long term. I can envision real estate values droping 20 - 50% in the next 2 - 5 years.