Dave: Here’s another one for you: The Fed and Treasury are running the printing presses full bore and with the stated intent of creating the necessary liquidity (priming the pumps, as it were). All other things being equal, let’s say they’re successful in their attempts and manage to kick start this thing again.
What happens to all of that excess liquidity? What is inarguable is that Greenspan’s reckless monetary policy were the major motive factor in blowing the dollar, dot.com and housing bubbles. We’re now throwing even more (printed) money at the problem. Do we not run a huge risk if success ensues? Meaning, don’t we run the problem of massive price inflation due to all of the excess dollars sloshing around?
