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: 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.


Anonymous said...

25-30% wow.

Hope not. I know that is not analysis. That would be crushing.

Anonymous said...

Not the time to buy fixed rate debt. What is the hard asset of choice?

Independent Accountant said...

Anonymous 1:

Why do you think the US will not follow Great Britain? If I recollect properly, in about 1979 the UK recorded a 27% inflation rate.

Anonynous 2:

One ounce gold coins.

Independent Accountant said...

The official UK CPI inflation rates were: 16.0%, 24.2%, 16.5% and 15.8% for 1974-77. Source:

Anonymous said...

Casey Serin should be executed.