Roubini About Inflation

Discussion in 'Wall St. News' started by melanie911, Jul 17, 2009.

  1. “I have also consistently argued that there is a risk of a double-dip W-shaped recession toward the end of 2010, as a tough policy dilemma will emerge next year. On one side, early exit from monetary and fiscal easing would tip the economy into a new recession as the recovery is anemic and deflationary pressures are dominant. On the other side, maintaining large budget deficits and continued monetization of such deficits would eventually increase long-term interest rates (because of concerns about medium-term fiscal sustainability and because of an increase in expected inflation), thus leading to a crowding out of private demand.

  2. What does any of that have to do with determining where the S&P-500 will be in the next 10 minutes? :cool:
  3. If we have any inflation, it won't be until there is The Greater Depression, 35%+ Unemployment, and people dressed in wooden barrels.

    At that point, 1/2% of America will have 98% of the fiat.

    Until then, deflation city.
  4. piezoe


    This is not 1930.
  5. wooden barrels...ah ah ;-)
  6. How is private demand crowded out?

  7. Maybe the chinese aren't a bottomless pit.
  8. By pushing up the risk-free rates, which in turn pushes up cost of capital, which makes investment unattractive.