Wednesday, December 17, 2008

approaching that economic black hole where things don't work the same

The Fed has essentially gone to a zero interest rate regime. And the Consumer Price Index dropped 3% in November.

Sayeth Paul Krugman, America has turned Japanese... Seriously, we are in very deep trouble. Getting out of this will require a lot of creativity, and maybe some luck too.

None of this looks very good. The Wall Street rally on the Fed news? Just further proof of the irrational element that underlies much trading.



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