Shiller: US could likely to fall into deflationary spiral ala Japan

[ucodegen]

[quote Rich Toscano]
We’ve had a couple months of falling headline (but not core) CPI, but as far as long term prospects are concerned nothing has changed — so the sudden fascination with deflation, and the rehashing of the same old arguments, is pretty puzzling to me and sometimes I get a bit impatient with the topic. Nothing personal!
[/quote]

I don’t pay too much attention to the current ‘headlines’. I have noticed a pattern of ‘herding’ the ‘Joe6Pack investor’ back and forth (creates churn for the investment firms, as well as opportunities for short term traders). A lot of the investment ‘market’ has turned more into speculation as opposed to taking the time required for investment. As a result – headlines alternate between inflation worries and deflation worries.

[Rich Toscano]

“Headline CPI” = CPI including food and energy

[Rich Toscano]

“Headline CPI” = CPI including food and energy

[Rich Toscano]

“Headline CPI” = CPI including food and energy

[Rich Toscano]

“Headline CPI” = CPI including food and energy

[Rich Toscano]

“Headline CPI” = CPI including food and energy

[ucodegen]

There is no chance that the money injected by the Fed will find its way into the real economy, and no chance that it will ignite a wage/price spiral in an era of credit contraction and rising unemployment.

Depends upon how it is done. If the money is injected through the standard lending system while that system has fear of defaults, it will not make it into the economy, or at least not that much of it.

The fed has also the ability to spend that money directly on government projects. This will put the money into the economy directly.

[ucodegen]

There is no chance that the money injected by the Fed will find its way into the real economy, and no chance that it will ignite a wage/price spiral in an era of credit contraction and rising unemployment.

Depends upon how it is done. If the money is injected through the standard lending system while that system has fear of defaults, it will not make it into the economy, or at least not that much of it.

The fed has also the ability to spend that money directly on government projects. This will put the money into the economy directly.

[ucodegen]

There is no chance that the money injected by the Fed will find its way into the real economy, and no chance that it will ignite a wage/price spiral in an era of credit contraction and rising unemployment.

Depends upon how it is done. If the money is injected through the standard lending system while that system has fear of defaults, it will not make it into the economy, or at least not that much of it.

The fed has also the ability to spend that money directly on government projects. This will put the money into the economy directly.

[ucodegen]

There is no chance that the money injected by the Fed will find its way into the real economy, and no chance that it will ignite a wage/price spiral in an era of credit contraction and rising unemployment.

Depends upon how it is done. If the money is injected through the standard lending system while that system has fear of defaults, it will not make it into the economy, or at least not that much of it.

The fed has also the ability to spend that money directly on government projects. This will put the money into the economy directly.

[ucodegen]

There is no chance that the money injected by the Fed will find its way into the real economy, and no chance that it will ignite a wage/price spiral in an era of credit contraction and rising unemployment.

Depends upon how it is done. If the money is injected through the standard lending system while that system has fear of defaults, it will not make it into the economy, or at least not that much of it.

The fed has also the ability to spend that money directly on government projects. This will put the money into the economy directly.

[Arraya]

I think congress decides on .gov projects, not the Fed. I believe she was referring to MBS purchases.

[Arraya]

I think congress decides on .gov projects, not the Fed. I believe she was referring to MBS purchases.

[Arraya]

I think congress decides on .gov projects, not the Fed. I believe she was referring to MBS purchases.

[Arraya]

I think congress decides on .gov projects, not the Fed. I believe she was referring to MBS purchases.

[Author]

Posts