Friday, June 5, 2009
"The specter of inflation that was supposed to scare investors back into commodities has so far stayed in the shadows. ... Eventually, Fed experimentation could send too many dollars coursing through the economy, setting off a nightmare scenario of rocketing, uncontrolled prices. Yet economist Ed McKelvey [EM] of Goldman Sachs [GSG] argues that is highly unlikely, and besides, the US central bank has ways to shut the monetary spigot, too-for instance, by shelving plans to buy mortgage-backed securities, or by raising interest rates", Gregory Meyer at Barron's, 11 May 2009.
Is EM serious? Or is his comment GSG's way of saying "thank you" for its stress test result?