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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: DebtBomb who wrote (166282)	11/22/2008 10:35:53 AM
From: Bank Holding Company	Read Replies (1) \| Respond to of 306849

Peter Schiff is right. The rest of the world manufactured stuff and they got NOTHING in return. It doesn't work that way. This is different than the 1930's because the internet has empowered people ....

To: DebtBomb who wrote (166282)	11/22/2008 10:50:59 AM
From: Perspective	Read Replies (3) \| Respond to of 306849

I can virtually guarantee you that the government will step up and take FDIC liabilities onto the Federal balance sheet. IOW, they will print brand new dollars to hand out to banks that blow after FDIC is depleted. Those will be the kind of extraordinary measures that could spawn hyperinflation - but it will still depend upon the rate of credit destruction elsewhere. It's not a rampant expansion of money supply if the shadow credit creation system is taking away credit as quickly as the Feds are adding it. I think that's something the inflationists may be underestimating. The inflation already happened. It's done. The money ran all over the planet. Commodities exploded. The rest of the world ended up owning all our debt. Whether we see it as a ruinous inflation here now depends largely upon what our creditors decide to do with their dollar holdings. Should they attempt to cash them in, we're crushed. If they all continue to hold 'em, then deflation probably rules the next few years. `BC