Do we see a common denominator?
CNN Money: Economists: Inflation threat growing
A survey of top economists shows that many are growing more concerned about inflation and slightly less worried about mortgage and credit market problems.
Nonetheless, the financial crisis remains the biggest worry -- 46% of the economists surveyed cited subprime loan defaults, excessive household and corporate debt or the credit crunch as the biggest problem.
3 comments:
We have what a friend of mine on the right calls a deflationary/inflation. Also, know as stagflation. The difference here is the last time we did the stagflation dance we hadn't yet ruined ourselves financially. The debt/ credit crunch destroy any way out of this in the short term. Many many businesses and people are going to pay for this. The ones that will profit ironically are the "greed heads" that caused it to start with. The excessive speculation on homes, then commodities etc. has turned our economy into a gambling casino.
The next 2-5 yrs. are going to be extremely ugly for the US. The BV$H fiasco is going turn into the 21st century version of the 30's. Maybe, a better example of what lies ahead is Japan in the 90's after the collapse of their real estate bubble. They tried using 0% loans to get moving again with little success for the most part. Without much of an industrial base left and companies out sourcing whats left its a bad situation. Add the 11 million illegal aliens ( neo-slaves) to this situation and maybe Roman empire 3rd century AD is closer to our current situation?
This is the economic equivalent of being stuck between a rock and a hard place.
This is depressing news. I have seen people talking about 5 years out like Warren Buffet. Hey we will be the most erudite homeless people in American history!
I remember saying to my wife on the day Scalia selected BV$H in Dec. 2000 just how bad things will be 8 yrs. from now after this guy and his crowd are done with us. Unfortunately, he isn't done yet and the worst might still be coming.
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