IS IT POSSIBLE TO HAVE ASSET INFLATION...IN A DEFLATIONARY REAL ECONOMY...?
PERHAPS...
ALL THE MONEY IS TRAPPED IN THE BANKS AND IN THE FINANCIAL ECONOMY...NONE OF IT IS "LEAKING" INTO THE REAL ECONOMY...
THIS COULD RESULT IN A VERY SLOW VELOCITY OF MONEY...ESSENTAILLY DEAD MONEY...
BUT IF THE FINANCIAL ECONOMY...VIA WALL STREET...STARTS A BIDDING WAR FOR "ASSETS" WITH THE HOARDS OF CASH THAT ARE TRAPPED IN THE FINANCIAL ECONOMY....ASSET PRICES COULD RISE...
THIS SEEMS ODD...SINCE BASICALLY "NO ONE IS SELLING ANYTHING" ....EXCEPT FINANCIAL PAPER....
BUT IT COULD WORK FOR A WHILE...
THIS IS ESSENTIALLY WHAT HAPPEN DURING THE BUBBLE YEARS...BUT THE PUBLIC WAS PARTICIPATING VIA DAY TRADING...401KS...AND THE HOUSE BUBBLE...
CURRENTLY THE PUBLIC IS OUT OF THE FINANCIAL MARKETS....AND THE REAL ESTATE MARKET...
THE ATTEMPT BY WALL STREET MUST BE TO GET THE SUCKERS BACK IN...ASAP...TO "ALLOW" THIS FED FUNNY MONEY TO "LEAK" BACK INTO THE REAL ECONOMY AGAIN...
SO NET NET...SAME BULLSHIT...DIFFERENT YEAR...
THE PROBLEM IS THAT IT GETS HARDER AND HARDER TO PULL OFF THESE BUBBLES IN A SERIAL MANNER AFTER A WHILE...
