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Tony Petroski
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The liquidity injections will inflate the currency. Real Estate is an inflation hedge. Housing turns up. The real cost of debt for the property owner is eased (he is no longer upside-down on his mortgage), problem solved. Future rate hikes will be used to attempt to wring out the inflation resulting in some downturns but not nasty enough to go to your cellar and restock your shotgun shells and your baked beans. I predict the world will not come to an end in 2008.
Oct 08 17:37 pm
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All Comments by Tony Petroski »The Beginning of the Endgame for Monetary Policy, Redux [View article]