Quote from eMiniFreak:
Why should inflation on a population with 10% unemployment, stagnant job growth, aging workers, and massive personal / structural debts be bullish for the market? Inflation (which could get brutal soon, considering the coincidentally lower agricultural yields) stands ready to kill us with prices on imports, and that could get really bad if oil goes high, since we need that for both defense and industry.
If we say that Ben dumping money on the market is good for equities just because their prices inflate, it ignores the counter-balance of people not able to buy as much with their dollars. We're a services economy, and we import most of what we buy from other places.
If Geithner is telling the world that you can't count on the American consumers to lift you out of the recession, doesn't that imply that it's even worse when Americans can't buy as much 'cause the clowns in DC can't see past the next election cycle?
