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  • More on Interdependence and This Crisis [View article]
    In regards to:

    "I'm no professional economist, but in this "best-case" scenerio wouldn't the only real solution be to actually encourage inflation to bump incomes upward 20-40% to make the existing paper loans affordable? I recognize that inflation also produces adverse effects in terms of savings being gobbled up, but it seems to me that the only sort of solution is an "adjustment" of asset prices as it is related to (particularly) working class earnings and I don't see how to do that outside of inflating our economy."

    Excellent observation, but it encourages big $$$ trade deficits and makes the cost of everything that's imported (almost everything at Walmart/Target - you get the picture) more expensive. The other factor: Would employers allow wages to keep up with the inflation? Doubtful. Less consumer spending power...

    There are NO EASY ANSWERS to this situation and the options, if Bush/Paulson want to really be honest with the American people are awful, bad, worst, horrible. If they sell you a bill of goods that you'll soon be back in your SUV, charging everything under the sun, well, that ain't going to happen for the next 10-20 years.
    Sep 24 17:20 pm |Rating: 0 0
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