You Should Be Worried About Inflation, Not Deflation, Says Paul Kasriel

I'm building a bomb shelter and storing lots of food and gas while it's still kinda cheap... Once we have to start paying off this debt Bush/Obama has given us, we are in for it!

aaron task and blodget cheated many of us out of the giant move in stocks with their constant negative talk. i wanted to buy in but didnt because they scared me away.

aaron task and blodget cheated many of us out of the giant move in stocks with their constant negative talk. i wanted to buy in but didnt because they scared me away.

I heard that Chrysler is buying Hummer...

The thing to keep in mind is that... 1) Yes, it is a bear market rally. 2) Yes, the rally could have the indexes double in value with many stocks gaining over 1,500%! Both can, and probably, will be true. So that is your mistake. Just because Aaron is right that it is a bear market rally, doesn't mean it is not worth it to ride up! If you can get 50% to 100% growth in 6 months, that can cover a lot of years. Maybe Aaron could have been more clear about that. Just because it is a bear market rally doesn't mean we won't double the price of indexes.

I agree Henry and the answer is that you must have some exposure to gold and the best returns come from finding a gold stock and the best value is invariably found in the juniors. I have invested strongly in a stock called Kingsgate Consolidated and it is going beautifully.

Not to get off topic...but I've been watching the market jump based on this morning's newest economic data / propoganda! Silly, silly market...reacting to the existing home sales data! Just an FYI boys and girls...the extreme majority of those numbers were driven by investors sucking up foreclosures...NOT real people buying homes. Having tried to purchase a home recently and having been outbid by multiple investors...multiple times...it's clear the people leading the surge in home buying are some of the culprits that led to the housing collapse...the speculators and the flippers!!!!!!!!!

Interest rates and inflation have been kept low by borrowing trillions from overseas. When the world stops lending to us because they realize america will never repay, interest rates and inflation will go through the roof.

Deflation first.. then inflation when the chickens come home to roost.... but it's really about timing and nobody knows.. way too many variables for anyone to call anything. Myself included... The market can stay irrational longer than you can stay solvent!

Interest rates and inflation have been kept low by borrowing trillions from overseas. When the world stops lending to us because they realize america will never repay, interest rates and inflation will go through the roof.

Have they renamed GM Obama Motors yet? And their cars Obamamobiles.

Hey Henry - Last time I checked, Paul Krugman has a Nobel Prize for economics. Kasriel, Hussman, Ferguson, and you got jack squat. Talk to the hand. Try to write something believable if you can. And forget your graphs - they're all static nonsense. They mean nothing.

"aaron task and blodget cheated many of us out of the giant move in stocks with their constant negative talk. i wanted to buy in but didnt because they scared me away."=========Thats why they call them brokers. They make you broke. Get it, they make you broke. Ha ha, ha ha.

A lot of theory and intellectual jousting going on here.... I am sure somebody will be right but it won't help any of us.. how about a shorter term prediction.. the future holds too many unknowns to make any of this germane!

How silly "aaron task and blodget cheated many of us out of the giant move in stocks with their constant negative talk". I've more than made up all my losses by investing in the last 4 months. Yes, i tuned in to Tech Ticker, but also to several other weighted sources, and YES I monitored the information of the holdings in my portfolio, as inside as i could get. I will admit i was scewed toeards a trusted analyst in my brokerage firm that was a lways a little ahead of the norm in seeing the bull run. That being said, the tricky part is still ahead in being able to keep those gains real.

if 60 trillion u.s dollars were streched out end to end, they would stretch from the sun to pluto. behold our national debt. inflation, deflation ?

No. Henry, I disagree. The difference maker is the suffocating debt this time. Again, the premise of the inflation thesis is the debt has to be within certain limits. I am afraid, the debts have busted that premise. Therefore I don't believe we can inflate our way out of this. By the same token, the unemployment rate will NOT be a lagging indicator this time around because, coupled with the suffocating debts, the jobless breeds the more jobless. We will enter deflation before we see the hyper inflation. Mr. Bernanke, will be increasingly irrelevant because 1) the interest rate will be more and more irrelevant 2)Mr. Ron Paul and the rest of us will pressure him to not cheat us, the tax payers. Once again, does interest really matter if there is no enough income to pay the debt??? The game is over. However, the drama will be going on for some time. We have passed the point of no return. Wake me up in the Q3 2009. If not, shake me VIOLENTLY to wake me up in the Q4 2009 CERTAINLY!!

I've been on the same roller coaster about what "should" be happening in the stock market based on the economy, and I'm really worried about the long term ramifications of how Obama (and Bush before him for that matter) spent all our "future" make-believe money. I set up some shorts, and got my shorts eaten and it wasn't fun like that can sometimes be. So now I conclude that I either roll with it (with a small amount of money and with tight stops) and make some money, or stay out and in cash. I'm kind of doing both, plus starting to dabble in (put) options to learn some simple hedging techniques. I think this market is going to be volatile and range bound for many years (or else completely tank) so I'm not "investing" for the foreseeable future except what IRA monies I get from work. just can't get so upset everyday about what "should" happen when bad data is posted and yet the market rallies based on somebody's idea that the data was "less worse". What kindof BS is that? Can't invest against that logic.

Jeffrey, why are "investors sucking up foreclosures, not real people buying homes"? I don't really understand the distinction. People who buy homes to let or to speculate have always been part of the property market, so what's new and why shouldn't they count now? Good luck if you're not one of them and are hoping to actually live in yours by the way.

Why would anyone listen to anything Henry has to say. He doesn't care about giving advice. He's a joke. All he cares about is viewership (bad or good) so they don't lose the Scottrade sponser. He will say anything to drive the numbers. BTW - most bears will call this a BMR for years and years to come and 10 years from now when the market tanks again they will claim victory.