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


To: Paul Kern who wrote (89575)12/13/2007 9:12:45 AM
From: John Vosilla  Read Replies (1) | Respond to of 110194
 
'It took Volker 10 years of raising the fed funds rate and mortgage rates in the mid-teens to kill stagflation last time'

No doubt history is about to repeat.. All the cards are soon to be in place. End of Chindia party of lower cost producer plus current housing armaggedon, two incredible disinflationary factors, within another 18-24 months will only accelerate the process.. Few seem ready for this dynamic.. Buffet even acknowledged this with his furniture business yesterday on CNBC..



To: Paul Kern who wrote (89575)12/13/2007 9:59:50 AM
From: Mike Johnston  Read Replies (1) | Respond to of 110194
 
It took Volker 10 years of raising the fed funds rate and mortgage rates in the mid-teens to kill stagflation last time

What would had happened at that time if Volcker had not raised rates but instead would had lowered them, just like Helicopter is doing ?

A: The dollar as we know would not exist, gold would not stop at 850 and we would never get the 80's disinflationary boom.