MarkGillCPA

Deflation: The Fed's Ugly Pit Bull

Jorsher, give us a break. This is a web site for investors, money managers, analysts, etc. We have no time or interest in PC statements for pit bulls. We've got bigger fish to fry (ooops, now I've offended the fish lovers).

Mark, I'm not disagreeing, but your article doesn't explain how the Fed's actions are deflationary. Also, why does that make the UYG a buy? (note - I'm long UYG as well, but for different reasons).

Isn't lowering the fed funds rate to 1 percent inflationary? Or showering cash on the financial sector? Sure, the current unwinding of leverage is deflationary, but are we setting ourselves up for a new cycle of inflation down the road?