Kunst

Fear and Loathing in 2009

"What happens when the supply of something grows unrestrained? Its value falls. Thus is the dollar. As its value falls, more of them are required to purchase items. Inflation ensues. How do we stop inflation? Raise interest rates to increase demand for dollars. Oops, there goes the housing fix currently being attempted."

Well, that's traditional thinking, lack of which explains a lot of the mess we're in. Inflation is the end "solution" to this game. Inflation increases asset prices, such as houses and stocks, not to mention real stuff like oil and food.
The government will increase the money supply, effectively devaluing the dollar. Ultimately we will be poorer, but assets will sell again.

What Are Some of the Best Hedge Fund Managers Doing?

Aren't these positions as of September 30? A lot can change in nearly two months time.