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Alias Born 09/30/2005

Re: andiron post# 41248

Thursday, 09/17/2009 9:24:41 AM

Thursday, September 17, 2009 9:24:41 AM

Post# of 51856
I feel you are right, the pain will linger for years.

The 70's replayed.

The FED has a real problem now. If they leave the liquidity in. It will cause hyper inflation, dollar destruction with interest rates in the teens. I remember paying 13% interest on a house in the late 70's. So the FED has been there done that.

If they take the liquidity out to save the dollar the economy will double dip.

Looks like from this they are starting to take some liquidity out now.

http://www.telegraph.co.uk/finance/financetopics/recession/6190818/US-credit-shrinks-at-Great-Depression-rate-prompting-fears-of-double-dip-recession.html

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