Wednesday, October 21, 2009
Jesse on Equities and Flation
Jesse at Jesse's Cafe Americain has an interesting 10 October 2009 post on what's driving equity prices today. He presents cases for deflation, stagflation and implosion. I favor the stagflation scenario like the 1970s, but with higher peak inflation rates than 1979's 13%, say 25-30% in this cycle. Here's a link: http://jessescrossroadscafe.blogspot.com/2009/10/speculative-bubble-in-equities-and-case.html. Jesse likens Wall Street to a group of third world warlords. I've compared it to a bunch of mafia families running an extortion racket.