dex
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- Joined
- Oct 28, 2003
- Messages
- 5,105
If you can;
Hold off on purchases - prices to come down; businesses going out of business.
Short term bonds up
Commodities down - buy low
Dollar stronger next year - buy FX then
I'm guessing; stock prices up at end of year/Jan and then down again - my guess is that we have seen the lows but might retest.
Get Ready For 'Stag-Deflation' - Forbes.com
In conclusion, a sharp slack in goods, labor and commodity markets will lead to global deflationary trends over the next year. And the fiscal costs of bailing out borrowers and/or lenders/investors will not be inflationary, as central banks will not be willing to incur the costs of very high inflation as a way to reduce the real value of the debt burdens of governments and distressed borrowers. The costs of rising expected inflation will be much higher than the benefits of using the inflation tax to pay for the fiscal costs of cleaning up the mess that this most severe financial crisis has created.
Hold off on purchases - prices to come down; businesses going out of business.
Short term bonds up
Commodities down - buy low
Dollar stronger next year - buy FX then
I'm guessing; stock prices up at end of year/Jan and then down again - my guess is that we have seen the lows but might retest.
Get Ready For 'Stag-Deflation' - Forbes.com
In conclusion, a sharp slack in goods, labor and commodity markets will lead to global deflationary trends over the next year. And the fiscal costs of bailing out borrowers and/or lenders/investors will not be inflationary, as central banks will not be willing to incur the costs of very high inflation as a way to reduce the real value of the debt burdens of governments and distressed borrowers. The costs of rising expected inflation will be much higher than the benefits of using the inflation tax to pay for the fiscal costs of cleaning up the mess that this most severe financial crisis has created.