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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: Fun-da-Mental#1 who wrote (10937)	7/23/2008 10:12:57 PM
From: Fiscally Conservative	Respond to of 50094

Time will tell. eom

To: Fun-da-Mental#1 who wrote (10937)	7/24/2008 12:07:10 PM
From: RonMerks	Read Replies (2) \| Respond to of 50094

The Fed can't reinflate, they can only slow the fall. That's my worry too. I think they call it- 'pushing on a string.' I am not a nervous nellie by nature, or a gloom and doomer. I was probably one of the last ones here to accept that the economy was tanking- because I just didn't see it in my local economy- but now I do. It's accelerating, and it's going to be deep and long. Small businesses are just taking massive hits. Local and regional banks that financed this final phase of the commercial real estate boom- are going to get killed. All these 2nd tier small shopping centers and office buildings that don't have 'anchor' stores are filled with what I call bullshit businesses. Scrap booking, tanning salons, health food stores, cell phone shops etc. These are closing up left and right. I think the big companies like Home Depot and WalMart will weather the storm, but small fringe business are going to get wiped out- and the banks are loaded to the gills with all these first time developers and these 2nd tier developments that are folding. After finally getting caught up reading all the posts here- what I think Slider is aluding to- is how deflation is used as a purposeful took by the Fed- as it was in the Great Depression. Everyone seems to think the Fed will do anything possible to avoid it- but, I think his point is that they will use it- just as they did in the 1930's. I guess we'll just have to wait and see how many more banks JP Morgan Chase swallows up? Ron