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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (1528)	4/5/1999 9:28:00 PM
From: don tang	Read Replies (1) \| Respond to of 1722

Hi, Michael: You raise a very interesting question, how is this bubble going to end. Instead of Great Depression Style deflation, I incline to think a hyper-inflation will even the gap between the real world merchandise price and the financial asset. Since during 1930's, US and the rest of world used some forms of Gold standard, so the printing money was not very easy. And the world trade was based on gold also. Now we are using flat money, and the world trade is based on electronic money from central bank's trading desk. Since baby boomers will throw whoever in White House out if they see their 401k account go to zero. So I don't think Fed will and can resist political and social pressures to let the Stock market go to free fall. The less painful way to get out of this bubble is to print more money. It may start with when basic price commodities start to rise for whatever reasons and Fed lose the capability to raise the interest due to the sake of the stock market. Any thought? By the way, I like this thread since it is most serious thread in SI. Don Tang