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


To: SeaViewer who wrote (48997)1/7/2006 6:30:07 PM
From: kris b  Respond to of 110194
 
"My guess is they don't want hyperinflation. But they do want 5-6% annual inflation rate. They are now distant themselves from the housing speculators by tightening the guildlines. Will it be too late?"

This is not a swiss watch that the can set perfectly.
It has been tried in the 70's, and look what got....14% consumer inflation rate by 1980. Once the inflationary expectations set in, it is up, up and away.



To: SeaViewer who wrote (48997)1/7/2006 7:13:42 PM
From: mishedlo  Read Replies (1) | Respond to of 110194
 
My guess is they don't want hyperinflation. But they do want 5-6% annual inflation rate. They are now distant themselves from the housing speculators by tightening the guildlines. Will it be too late?

I believe they want 2% inflation
However I think it is impossible to measure.
I talked about that here:

mises.org

Mish



To: SeaViewer who wrote (48997)1/8/2006 1:03:42 AM
From: John Vosilla  Respond to of 110194
 
"They are now distant themselves from the housing speculators by tightening the guildlines. Will it be too late?"

They are way too late. Will only compound the problems on the downside. They needed to do this a year and a half ago but of course couldn't due to the elections..