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


To: Broken_Clock who wrote (99880)11/24/2008 3:51:06 PM
From: gregor_us  Read Replies (1) | Respond to of 110194
 
John Kemp agrees with you and says no reflation can ultimately take hold unless its supported by job growth or at the least the cessation of job losses.
ftalphaville.ft.com

G



To: Broken_Clock who wrote (99880)11/26/2008 4:12:20 PM
From: Hawkmoon1 Recommendation  Read Replies (1) | Respond to of 110194
 
but with wages flat and falling , consumerism dead and jobs vanishing faster than yesterday's fart we are heading for a nightmare

So very true.. Deflation will continue so long as both consumers and investors believes prices will continue to fall. And if both of the above are worried about where the next paycheck is coming from, and/or worried about finding themselves on the streets with an imploded FICO score and credit card levels depleted, the scenario grows even more dire.

This is the time where the government has a vested interest in its human capital and should partner with private industry to engage in retraining of the work force and spurring new technological innovation that will enhance economic productivity for the next business cycle. These kinds of economic disruptions require economic shock treatment to prevent the wholesale destruction of money supply via debt defaults.

But we gotta keep people employed doing something so they can keep paying their bills and not become a greater burden upon the rest of the taxpayers. So if we're going to spend the money, make sure it's spent on something that increases our economic competitiveness in an new industry, not shoring up industries where we're no longer competitive (autos?)

Hawk