Another great piece from Bloomberg debunking another myth perpetuated by government fat cats.
www.bloomberg.com/apps/news?pid=20601039&sid=a_IZywsbozWg
Now...deflation in the longer term instance is not good in any means, just take a look at Japan, but at this moment its exactly what the doctor ordered.
Deflation gets things back in equilibrium. Brings back accountability. Sets a proper balance between savings and consumption, and most importantly makes governments and banks not take on more debt then they need to.
No wonder why they are railing against it so hard. The government seems to be in a death race to reflate the economy with more debt so that the financial players on Wall Street can continue with their debt shenanigans.
I'm glad someone actually had the balls to stand up after all these years and finally make an argument for deflation. Over the long run, deflation is damaging to an economy. Then again, so is inflation. All things in moderation.
ReplyDeleteMatt Lynn is right, its bad for governments, banks and the highest earners - all people who directly benefit from bailouts while the masses who drive the damn economy benefit. Seriously, where the f#ck is my personal gov't stimulus in 2009? If they simply took the money they threw at AIG originally ($80B) and gave it to the public, we'd have spent the economy back into shape, inflated the banks into happiness, and saved the FRB a crapload of debt.
Status Quo 1 : Common sense 0
Thanks For reading. You sound like Dick Fuld from Lehman. You want your bailout? Go work on Wall Street, lever up 50x with other peoples money using quaant models that don't work, wait wait wait. buy more as the price goes down. Lever up to 60x. Then watch it fall down.
ReplyDeleteThanks For reading. You sound like Dick Fuld from Lehman. You want your bailout? Go work on Wall Street, lever up 50x with other peoples money using quaant models that don't work, wait wait wait. buy more as the price goes down. Lever up to 60x. Then watch it fall down.
ReplyDelete