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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 (9765)	3/8/2004 9:38:45 PM
From: russwinter	Respond to of 110194

I think you easily can have a #5 initially, and in fact #5 is my predicted outcome if they fiddle while inflation rages. It will be a hyperinflation=job crash, followed by asset based deflation (of things requiring credit): a classic boom-bust. High levels of inflation will destroy whole industries, and that process is now underway. Case in point, the Delphi and steel supplier to the automotive industries stories we've posted. Holding people's feet to the fire on long term contracts while input costs are hyperinflating is guaranteed to put firms under, and people out of work. There is nothing benign about serious input inflation, and easy money has been the cause.