OK! I need everyone's input on this one. It's bothered me for some time, and I "think" I instinctively know the answer, but here it is:
If quantitative easing goes ahead full steam, forcing interest rates to stay low, resulting in the precipitous devaluation of currencies, what is the stock market going to do? I'm pretty certain what gold and silver will do..but what about the markets!?!? If the bond vigilantes liquidate, where will they park their money?
Leave a comment with your thoughts!
Leave a comment with your thoughts!
UPDATE: Some good analysis on this topic follows here: http://humblestudentofthemarkets.blogspot.com/2010/06/inflation-vs-deflation-revisited.html
ok, this is kind of a cheat, but it's a roundabout answer at least. precisely why things will happen and their relationship to QE and other factors... well, I'm a simple man with a simple brain, and I try to hold a minimum of info. that usually just boils down to general direction and how much of it.
ReplyDeletewhich is a very long way of saying, I agree with meredith whitney. now, there's someone who should have been treasury secretary....tho nobody in govt would likely have listened to her...
http://pragcap.com/meredith-whitney-housing-double-dip-is-certain
John! Haven't been able to watch Whitney's video yet, I will do so today! Thanks for taking the time to comment =)
ReplyDelete