The upside of a severe and painful depression is that the much needed adjust in the economy would finally happen. The flow of credit to productive enterprise and real risk-taking (value creating) activities could resume.
April 23rd, 2009 | Dan Denning | 25 comments | ContinuedAll Posts Tagged With: "hyperinflationary"
Australia’s Capital Crisis and its Chinese Future
Meanwhile, what about the present? The IMF issues its World Economic Outlook twice a year. When times are good, the forecasts are too optimistic. When times are bad, the forecasts tend to be too pessimistic. And when times are really bad??
April 17th, 2009 | Dan Denning | 4 comments | Continued
Conflicting Forces Acting Upon the Stock Market
Stock prices in the ’70s, for example, tended to bear up or fall a little. In real terms, however, they fell a lot. We seem to be coming upon a similar situation now – popularly known as stagflation. The economy is sinking… while inflation pushes up consumer prices.
March 4th, 2008 | Bill Bonner | 0 comments | Continued