Everything has a cycle.

If fed did not prop up the deflation cycle in three key events, long term capital collapse, tech bubble burst, and 2008 real estate bubble burst, we would have a healthy economy right now.

But fed choose to print money to prop up asset markets, stocks, bonds and reflate real estate, with the consequence it can not unload its balance sheet without severe depression.

fed can choose 1) continue load up its balance sheet to face its ultimate collapses, 2) slowly unload them and let market's deep correction, 3) hyperinflate to collapse the currency. 

which road do you believe fed will take?

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• 1 -大宁波- ♂ (0 bytes) () 05/29/2013 postreply 21:29:12