Zeev's Turnips Patch-No Politics (ZEEV)

[marvin1946]

Zeev and thread,
Anyone read the Stephen Roach(chief economist, morgan stanley) op ed piece in todays NY Times regarding deflation. According to roach we are on the cusp and will probably be there with the bursting of the housing bubble which in turn will burst the consumer bubble. He does not even suggest a way out.
His is a contrary view but my belief is that govt needs to incent business spending while lowering rates further and adding liquidity to the system. 5% mortgages will keep the housing market healthy and renewed capex spending will bring the economy out of near-deflation. Perhaps tax credits for the next 6 months for companys that spend on capex?? Marv