Market turmoil!

[cottonpicken]

Deflation:

1-lots of people go broke.

2-lots of businesses that rely on people spending money go broke.

3-governments go broke from relying on business and peoples tax revenues.

4-governments tax people with anything worth taxing making those people broke.

5-more business's go broke who rely on wealthy people.

A fiscious downward spiral.

Even though inflation is fundamentally wrong,i believe it the best option.

And market descions would be a whole lot easier if the info that is spit at us was accurate.

[cris]

just wondering? We talk about all the money being injected into the economy as being inflationary which under normal conditions it should be. The thing that should be considered is that in the past year a lot of money has evaporated.

My example is the guys house that was 500K, that is now 250K. That money evaporated when he got booted out of his house. The money he paid was causing the inflation, as the profits the previous owner made, were being invested someplace else.

Did the money evaporate? yes, but someone was on the hook for it. So if the fed and the investors pick up the difference, is it really adding more money to the money supply? or is it trying to maintain the status quo?

[jensend]

i agree with you cris. if you look at the wealth that has disappeared off balance sheets and net worth statements they could print a fair bit of money just to get back to last june. i think the estimate is 1 trillion per thousand points on the dow and that doesn't take into account the losses on houses and other real estate or any other assets. the danger is if they go overboard at the mint. i wonder if to take best advantage of any inflation in grain or other commodity prices a person won't have to be directly investing in futures contracts because if there is a sharp spike in prices it may not make it back to the producer to the full extent. we saw that this past while.

[parsley]

Everyone has $40.00 to invest. Pars
<a href=”http://www.parsleysnotebook.blogspot.com/”target=”blank”> Click Here to Visit Parsley’s Notebook Blog to Read More. </a>

[parsley]

Everyone has $40.00 to invest. Pars<a href=”http://www.parsleysnotebook.blogspot.com/”target=”blank”> Click Here to Visit Parsley’s Notebook Blog to Read More. </a>

[Hopperbin]

Can you post the link?
When I google all I get is cookbooks, cooking with chives and parsley etc.

[parsley]

Sorry about that, hopper.I have a problem with that link. Must have a glitch.
Enjoy. Pars

http://parsleysnotebook.blogspot.com/