Opebo and Jmfcst agreeing on economics, cats and dogs living together...MASS HYSTERIA
Actually, it tells me something as well...
EDIT: Well, it tells me that ( to myself), but it tells me something more important - wait patiently and prepare.
look...though you and opebo have totally different economic viewpoints, both of your viewpoints never change, regardless of market conditions. Both of you are willing to play chicken with icebergs. I, on the other hand, am willing to temporarily change course in order to save the ship.
Actually while my economic
ideology doesn't change, my policy prescriptions do change quite often.
For example massive printing is the obvious action in a deflation, and always works very well. Bernanke is good. It is absurd to compare this to the Weimar or Zimbabwe cases as the situation is entirely different.
I don't recommend this sort of printing in normal times, though obviously a continuance of some milder Keynesian redistribution is always necessary. During 'normal' 'market' operation, it is better to tax said monies from the privileged to provide for redistribution (along with several other ways). The printing aspect is the medicine for deflation/depression, not the daily tonic in normal times.
That said, one aspect of this Bernanky printing I don't like is that the money goes to holders of securities - the very class which will not spend/cannot spend. We need to print a trillion or two and get it directly into my hands and the hands of people like me.