What deflation?

Discussion in 'Wall St. News' started by businessstaxes, Sep 23, 2010.

  1. businessstaxes

    businessstaxes Guest

    Does the US fed think the market is stupid or public is stupid.

    Deflation is not the reality

    Reality is STAGFLATION: high unemployment AND high inflation AND low growth.

    staglation is the REALITY....

    and the gov't debt is unsustainable...

    making the USD worthless is worst than any deflation or inflation problem. the gov't wants to print it's way out of debt. and who pays for the debt...from inflation....fix income investors.. corporate bonds and gov't bonds and ipos is what drives the economy..why would anyone want to lend money to the gov't? Greek gov't cannot even get loans.

  2. Did you not get the message? It was quite loud and clear in a secretive sort of way :)

    Bernanke is gearing up to fight DEFLATION.

    Therefore more QE - more QE means ET will be gearing up to place large bets AGAINST the $. As usual they will be on the wrong side as in Oct-Dec 2009.
  3. Deflation happens when you've money but not willing to spend or invest.
  4. The refusal of banks to lend money precedes "that". You're describing the after-effect. :cool:
  5. We have strong deflationary forces in the US. The Government and Fed are trying to "combat the disease" by substituting a worse disease.
  6. businessstaxes

    businessstaxes Guest

    give everyone a raise and raise the minimum wage if you want to combat deflation.

    oi is $70/barrel
    health insurance going up.
    wages is same.
    real estate prices same as 2005

    deflation b.s is just an excuse to print money and give to wall street. and jack up prices more. basically ripping off pension fund fix income investors and giving it to wall street bankers.

    you do know that 50% of retirement funds and pension funds are fix income investments.

    pandora box of qauantitiave easing is wealth destruction and worthless currency which cannot be undone.

    the need for gov't intervention is over...unless you want a central command communist country..which the country is slowly becoming 1984.

    the only reason the gov't had to bailout th banks was because they risk going to chapter 11 and insolvent banks.

    this whole gov't interference with free markets was never to be permanent.
    anti-terrorism laws are now permanent in the US. this war on terrorism going for 10 years now.

  7. Wait a sec, I am a bit confused here...

    Surely, if I'm a fixed income investor, Fed's QE (printing of money) is the best thing that could possibly happen to me? Have you seen the returns on bond indices recently?
  8. zdreg


    to date the market doesn't agree with you on inflation.
    greek government was able to borrow money.

    as to the public being stupid or greedy that is a given.

    " Sept. 23 (Bloomberg) -- Leona Miller, an 84-year-old retired beautician, says she was seeking safe and steady income from bonds two years ago when her Wachovia Corp. broker recommended she buy securities paying 9 percent interest.

    Within six months, Miller had lost about 30 percent of her $20,000 investment and the bonds were converted into shares of Merck & Co. in a falling stock market. The San Diego resident, who still doesn’t understand what happened to her money, had purchased bonds known as structured notes that include built-in derivatives.

    Sales to Miller and thousands of other individuals have driven structured note offerings up 58 percent to $31.9 billion through August, according to data compiled by Bloomberg. With U.S. interest rates near zero percent, investors are snapping up bonds such as reverse-convertible notes with knock-in put options or Leveraged CMS Curve and S&P 500 Index Linked Callable Notes, some with face values of as little as $10. "

  9. and CREDIT expansion stops and reverses

    Lenders don't want to lend

    borrowers don't want to borrow


    DEMAND dries up

    therefore the relative value of CASH for available goods increases.

    That's why in a DEFLATION cashola is Kingola.
  10. businessstaxes

    businessstaxes Guest

    market is a manipulated scam

    it's more rigged than penny pinksheet stock.

    they had to print euros monet to lend to Greek.

    she bought junk bonds pushed by her broker.

    worthless junk bonds cdo which were levered is what bankrupted the banks.

    goldman sachs crime syndicate was pushing that sh##t to the public. these guys are worse than heroin pushers.

    #10     Sep 23, 2010