Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: russwinter who wrote (25618)	1/31/2005 7:48:03 PM
From: Les H	Read Replies (3) \| Respond to of 110194

There's a 52-week high in Securities Lending today. ny.frb.org

To: russwinter who wrote (25618)	2/2/2005 5:01:18 PM
From: croesus1111	Read Replies (3) \| Respond to of 110194

Russ, What do you think of the possibility of deflation occurring with hyperinflation at the same time? deflation=contraction in GDP with associated failure of debt repayment. Seems to me that the the inflated money is all going to Bully. But at least a third of the population does not have any inflating assets (houses or stocks) and does not have any cash at the margin. Their real wages are growing at less than the inflation rate. So there could be a growing failure of debt repayment even as the currency inflates. With the weakness of labor in the labor-management game, these people have no ability to get higher wages in the face of inflation, the way people did in the '70's and early '80's. A lot of these folks seem to be right on the edge now. A bit of inflation in their bills, or a few more lost jobs could send an increasing number of them over the edge. How many would have to default on credit card, rent, or other payments before we have a debt repayment failure leading to deflation? Simultaneously, the Fed continues to print money, but it won't bail out the thirty percent who don't get any of it. So the currency inflates while the economy contracts, ala Argentina?