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

Rick - I hear you. As long as the market is going up on the rate of cash burn decreasing, and only in certain sectors, Its hard to buy into this. One concern I have is that the recent rally could driven by expectations of inflation coming in the future (dollar has been getting hammered). So your options are to stay in cash and watch that slowly lose value or go into a market where the fundamentals are clearly lousy. Fun stuff.

Henry and Aaron just create a platform for our discussion. Sure they are biased. Who isn't? I've never heard them screaming to follow their advice. BTW, America's biggest creditor is now .... America.

The debt isn't a problem. I do believe we need to get our house in order but We are America and We make the Rules. If we go down, we take the world with us and then we form a new currency and rebuild and make them all keep their worthless Treasuries. lmao

To those that claim that Aaron task and Blodget are irrationally negative, I suggest you read up on Elliot waves. That is, there is timing in the market. And its not fair to expect the timing from them. if you can get that right, you would be a zillionaire. If anyone had that knowledge, why should they give it away free to all the bozzos here?

I really appears to me that the ones who were "lucky" to get in on this rally have swollowed the "bull-market fish", the ones who missed the boat and hopped to get in on a more serious dip are sour, either way, this is indeed a BMR and only the ones manipulating it will know for sure when it will end. until then ride it and short it at the same time, I am certain sooner rather than later this big fat lye will pop and then, well then hold your breath!

Deflation is the products of deep recession, while inflation derived from exessive stimulus, rate cuts, in consumer, business spending rebound recovery reuslted speculation over soaring asset ( commodities, oil, metal, equities reale state) prices inflation. we are worried about this years deep resulted deflation while next years asset ( negative interest rate, bond bubble, commodity, energy price bubbles assocaited inflation will repeat 2001 housing prices bubble details on www.osawh.com/macro.html www.osawh.com/prod01.htm www.osawh.com/centmaf.html

Yahoo! Finance User - Tuesday June 02, 2009 11:09AM EDT 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.===== Didn't Al Gore get a Nobel Prize? Sorta tarnishes the rose, huh?

Guns and Gold !! Well, j/k about the guns, but, I think inflation is coming down the pike. The thing to watch for is the fed buying govt t bills directly.. if that happens, the inflationary spiral has begun !

"Geithner said that in two days of talks, Chinese officials recognized the need to move aggressively to revive growth and stabilize the banking system even at the cost of higher U.S. government budget deficits." Guess what? The Chinese cleared Tiny Tim for spending more nonexistent month.

for all you bulls out there, answer me this: once the gov't stimulus runs out, what will fuel growth to justify the current prices of the stock market? and don't forget all the forclosures still coming, the number of unemployed, the metric tons of bad debt on the banks books, etc.

I'm more worried about a third generation of soft, junk food eating narcissists with peas for brains and Mammon as their God!

China is bluffing the whole way .... They need the $$$$. The reason is simple, their RMB Yuan SHOULD be even weaker. The weaker $$$ will be stronger because all other fiat currencies are weaker than the weak $$$. This is the world we are in.

Theory doesn't mean jack if your timing is off, unless you are not invested and just like to see if you can call it better than the "experts"... if you can't put a date on it, better to ride the waves!

for all you bulls out there, answer me this: once the gov't stimulus runs out, what will fuel growth to justify the current prices of the stock market? and don't forget all the forclosures still coming, the number of unemployed, the metric tons of bad debt on the banks books, etc.======= Aw, that's easy, PIXEY DUST

Theory doesn't mean jack if your timing is off, unless you are not invested and just like to see if you can call it better than the "experts"... if you can't put a date on it, better to ride the waves!

When the entire financial system was on the verge of collapse, the federal government was the only entity with enough money to prop it up, which they did, as we know. They chose NOT to let the banks fail, due to anticipated catastrophic repercussions. This strategy of providing massive amounts of capital to prevent total collapse has been employed with the auto makers. To let certain companies fall would have resulted in A LOT of pain, for A LOT of people, for A LONG time. Many people would be suffering, and it would not be long before they started raising hell, and blaming our leaders for just ALLOWING this to happen! I guess, at that time, they would just explain to the masses that all the suffering was healthy, normal, and quite necessary, because that’s how things work in a capitalistic society? Boy, I’ll admit I wouldn’t want that task, either.

Pending Home Sales Index: The index measures housing contract activity. It is based on signed real estate contracts for existing single-family homes, condos and co-ops. A signed contract is not counted as a sale until the transaction closes. spin ... spin .... spin ... spin .... spin

unrepresented_american: There is one problem with your philosophy: People will just go to your home/business/hideout to get what you have "stored up"; it would be like taking candy from a baby! Everyone who is need and doesn't have will GET needed food, clothing, fuel, etc...when they DON'T have. But, being you so graciously stocked everything up, they will be very grateful. They won't even have to work for it. Also, if you plan on gaurding your "goods" 24 hours a day with weapons, I'm sure sleep is the least thing you need, right!? Finally, this stock market is rallying on what grounds: optimism, bankruptcy, housing crisis, inflation and ONLY 575K jobs lost, let alone a supercalifragilisticexpealodotious national debt that would be impossible to pay back (the interest alone would be tough on a kazillion dollars)!? By the way, what other business (at least the ma & pa) gets bailed out when they are in trouble?! Trouble is, there are so many sidebars and associated businesses with GM, BofA, C, and AIG, etc...that we are damned if we do and damned if we don't!

Conclusion: Those who POST here are just as DUMB and easily mislead as those who run the thing. NOBODY is interested in ANY opinions here! If you were RICH, you'd be in Europe bangin' a supermodel!!! In other words: Go do SOMETHING with your lives and KILL your computer!

The world is more than just America. I left America 8 years ago. Trust me, there's a really good, positive life to be had out here without all the cynicism and rage and saturation media coverage! I just wish the plumbing were better :)