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tigertrader

06/19/09 6:24 PM

#3140 RE: LongCYRX #3138

LongCYRX: You're absolutely right. There is going to be a very big price to pay for all the liquidity injected into the banking system. As soon as the excess capacity in the economy begins to reach near-full capacity, the FED will find themselves between a rock and a hard place. Tighten to control inflation, and credit will be choked off, and the economic recovery will stall and roll over. As always, the Fed will be slow to react, and very reluctant to tighten, and we are subsequently going to see some nasty inflation.