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  • Dr. John Hussman 4 comments
    Jul 21, 2009 02:39 PM

    “Rather than following policies that would have allowed for a sustainable recovery, our policy makers opted for a stunningly unethical strategy of making bank bondholders whole with well over a trillion dollars in public funds, watering down accounting rules to allow banks to go quietly insolvent while reporting encouraging “operating profits,” looking beyond the continued shortfall of loan loss reserves in relation to loan defaults, and doing nothing meaningful with regard to foreclosures, whose rates continue to soar and which face a fresh wave later this year and well into 2010 and 2011. These policy responses have more than doubled the U.S. monetary base within a period of months, added a trillion more in outstanding Treasury debt, and virtually assure that the value of those government liabilities will be re-priced in relation to goods and services over the coming decade. A range of different methodologies suggest a doubling in U.S. consumer prices over the coming decade, though with the majority of this pressure occurring 3-4 years out and beyond.”
    Dr. John Hussman

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This post has 4 comments:

  •  
    Fascinating quote. Can you link to the source?
    Jul 22 06:12 AM | Link | Reply
  •  
    It was from Hussman's June 8 letter:
    www.hussmanfunds.com/w...
    Jul 23 03:55 AM | Link | Reply
  •  
    The key quote: "A range of different methodologies suggest a doubling in U.S. consumer prices over the coming decade, though with the majority of this pressure occurring 3-4 years out and beyond."
    Jul 23 03:56 AM | Link | Reply
  •  
    Wow!
    I use my instablog as a filing cabinet to keep track of interesting ideas and notable quotes. I didn't realize that Hussman's quote would attract attention from such industry heavyweights as Mick Weinstein and David Jackson.

    I am glad it helped, guys.
    Jul 24 01:14 PM | Link | Reply
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