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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: TobagoJack who wrote (41501)10/18/2008 6:28:40 AM
From: nonrev  Read Replies (1) | Respond to of 218030
 
Thanx TJ. Your roundabout way of looking at an issue usually gets me thinking. Meditated ahwile on the "melting instead of breaking" observation regarding the banking situation... more like water torture instead of falling off a cliff... I guess

Still unclear on how this will develope with multiple scenarios dancing in my head.

The inflation question has got me wondering strongly if I'm not wrong to expect inflation and not deflation. For one thing I don't see where a feedback-loop for self reinforcing inflation will be built. Traditionally it has been via a wage/cost/wage loop but I just don't see wages in the picture this time. Also in an inflation the velocity of money is high as people try to spend what they got before its devalued. So far that isn't happening.

Lots of Helo dollars out there as you mention, and maybe more to come... but I don't see that as important as where these Helo dollars eventually end up making a landing....They could all end up landing back at the Fed and absorbed. Entering and exiting within the Banking system.

Still holding on to the best I have heard it summerized so far... that is (paraphrasing) "Inflation of everything you need, deflation of everything you own"... ha!

Rgds
nonrev