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


To: kris b who wrote (48599)1/1/2006 11:24:03 PM
From: UncleBigs  Read Replies (2) | Respond to of 110194
 
Can we successfully reflate from where are now? Certainly but it would almost guarantee a complete collapse of our monetary system. Will the Fed blow itself up? I think not.

The only think that could reflate from our current position would be an outrageous helicopter drop of money that would be guaranteed to fizzle out and cause a horrendous crash.

We may be already past the point of no return. We'll have to watch carefully how this all plays out. Regardless, I think powerful deflationary forces will be exerted over the next 2 years at least before the next reflation has any chance of taking hold.

The Fed let the Nasdaq collapse by 80% before this reflation saved the economy.