SI
SI
discoversearch

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: GST who wrote (86606)9/20/2007 11:45:54 AM
From: John Vosilla  Respond to of 110194
 
'..on the contrary, the bursting of the housing bubble weakens the dollar and adds to inflationary pressures.'

It certainly does for the dollar continuing to weaken short term and especially for inflation on the back end when housing actually recovers, inventory tightens and rents and costs of construction skyrocket along with everything else.. Remember in the 70's we actually had two major housing corrections followed by swift bounces a few years later..



To: GST who wrote (86606)9/20/2007 4:15:41 PM
From: sea_biscuit  Read Replies (2) | Respond to of 110194
 
I think Mish is in the deflation camp because he believes hyperinflation can happen if wages increased sharply and he argues that wages cannot increase because of competition by cheap labor across the world. Maybe there is a gaping hole in that argument somewhere, but I cannot seem to find it!