Thursday, February 19, 2009

Worse Than The Great Depression?

Yes.
"The credit bubble that just popped exceeded that preceding the great depression, not just in the US but worldwide. Thus, it is unrealistic to expect the deflationary bust to be anything other than the biggest bust in history. Those looking for hyperinflation or even strong inflation in light of the above, are simply looking at the wrong model."

Click the link above and read the whole thing (it's long) if you think all the money being printed and borrowed right now is going to lead to near-term inflation. The contention is made that the Fed would have to print about GDP x 25 to even make a dent in the depression.

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