Walker on CN-BS ths morning.. "We need tough love and to make tough choices in Wash"

Quote from fearless9:

His choice is inflation but as the song goes
"you don't always get what you want"

This is all one giant experiment in that nobody knows what the outcome of each action will be until it is applied.

Two things that I do know are ...

... the problem is immense in that the markets (that is us) want to deflate to a lower more manageable level and PTB are trying to inflate back to near the good old levels.

... the path to inflation lies through deflation.
The question is can PTB summon sufficient strength to blast their way clear through the current deflationary period.
So far the answer is NO NO NO because none of the bailout money has blasted it's way through the black holes of the banking/insurance/investment sector and out the other side into the retail (that is us again) sector where it can be applied to the daily economy.
Perhaps they need to nuke the black holes with a Trillion or two instead of pissing around with silly little figures.

So, right now I do not see inflation on the horizon yet.
Maybe it will appear and then again, maybe not.

regards
f9
More...

"PTB".. is that P. T. Barnum??
 
So the question becomes....will dilution show up as inflation ?

Inflation/deflation are dependent on the velocity of available currency to price goods and services.....

Thus far....money has been given to banks who lost their money via Adam Smith's invisible hand....with regards to side by side real estate comparables.....marked to market .....incredibly overlevered relative positions....

So in one sense.....money is being replaced that was lost.....
Now the question becomes one of availability....

However in the US Economy....and any fiat money economy...it was indeed Adam Smith invisible hand losses that created the winners and losers....

An economy is about winners and losers....the idea being one struggles continually to a better and more efficient place.....whereas increased productivity is the result...
 
Quote from libertad:

So the question becomes....will dilution show up as inflation ?

Inflation/deflation are dependent on the velocity of available currency to price goods and services.....

Thus far....money has been given to banks who lost their money via Adam Smith's invisible hand....with regards to side by side real estate comparables.....marked to market .....incredibly overlevered relative positions....

So in one sense.....money is being replaced that was lost.....
Now the question becomes one of availability....

However in the US Economy....and any fiat money economy...it was indeed Adam Smith invisible hand losses that created the winners and losers....

An economy is about winners and losers....the idea being one struggles continually to a better and more efficient place.....whereas increased productivity is the result...
More...

I imagine we will all wait into '09 to see the outcome of the almighty struggle and even then it will probably seem odd to us.

regards
f9
 
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