[beforeobamabans]

The interesting thing about deflation is, it benefits those who do the exact opposite of inflationary defensive tactics. Because this generation has never experienced deflation, everyone will be deep in trouble before it dawns on them that this ain't inflation (witness tactics discussed above). In deflation, your dollar buys more tomorrow than it does today so cash is king. Debt is anathema because you will pay off a loan with increasing valuable dollars. This is why the indebtedness of our government and our private sector will be a stubborn problem for at least a decade, maybe two.

The only way out will be real austerity.

[QNman]

Beforeobamabans -

I was going to throw my 2-cents in, but... You've covered my 2-cents better than I could hope and added a nickel.

[Glotin]

Originally Posted by stevelyn

Nope. Let it crash and burn. It needs to. Hopefully every last one of them responsible get burned to ashes.

Who all do you believe is responsible? I'm willing to bet your anger is misplaced; sounds like you've bought the story fed to you by the govt and MSM.

Originally Posted by beforeobamabans

See, because this generation has never experienced deflation, they don't know what it is or what to do about it. All the fed printing would result in inflation if the slack in demand and employment ever disappears but it won't.

Remember that Bernacke's PHD is in the depression and deflation. He knows what he is doing--fighting tooth and nail, using everything including the kitchen sink to keep the deflationary spiral at bay--and he's failing. Demand will never return to early 21st C. levels because of massive personal debt (which has doubled since 2000) and the inevitable tidal wave of baby boomer retirements, proceeding at 10,000 per day. BB'ers are grossly over indebted and under capitalized for retirement with an average of $40,000 in savings. Do you think they are going to be spending at the same pace as when they were working? No way!

You can already see major deflation right in front of you. What's happened to the housing market? What's happened to employment and wages.

There are plenty of notable economists (most of them, actually) who disagree with "Bernacke" [sic]. He is no longer an independent actor; he has different restraints and incentives than an independent economist.

Originally Posted by beforeobamabans

The only way out will be real austerity.

Completely agree with you there, but don't dismiss hyperinflation as impossible.

[beforeobamabans]

Originally Posted by Glotin

"Bernacke" [sic]

[sic].

[certifiedfunds]

The Ben Bernank

[G19G20]

The stock market is pretty much just automated computers buying and selling to each other at light speed and making fractions of a penny on each deal. There's very little human interaction in the market anymore. Google HFT if you want to read more.

I think 90% is a big overstatement but a correction is due. The catch is on one hand the Fed is pumping $85B a month into the economy through the banks and the gov't and their printing press never runs out of ink. Zimbabwe had a stock market around 40,000 points by the time their money was worthless. On the other hand, we are getting up around the point where the 2008 crash started. Hard assets that retain value is a better investment than the stock market but also not as liquid.