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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (362978)	12/15/2007 7:58:51 PM
From: combjelly	Respond to of 1578054

"Stagflation can and probably will happen." No kidding.

To: Road Walker who wrote (362978)	12/16/2007 1:09:31 PM
From: tejek	Read Replies (1) \| Respond to of 1578054

If we go into recession, inflation will be a distant memory. That's not necessarily the case. Stagflation can and probably will happen. Its possible.....esp for a short period of time.....but this is still a global economy and its likely that as US demand craters, the global economy will slow down and that will lessen the pressure on oil. As I understand the 1970s period of stagflation, OPEC kept oil prices up even as demand weakened.......an irrational action that really weakened OPEC. I don't think they will make the same mistake twice. And the price on other commodities like copper and aluminum have been dropping most of the year. And the flu that is affecting mortgages, if it leads to recession, could affect other flaky debt, like credit cards. What do you mean by flaky debt? But who knows... maybe this will be 'contained'. That's the most likely outcome because its in the best interest of many people to do so.