Believe it or Not - Inflation Threat is Coming

They Say Equities Have Bottomed

My opinion is.... well - perhaps they did temporarily last week.... but this is an uptick that won't last for more then another few days - and at max - a week.

I tend to agree with the other comments in this article though..

The government's bailout plan is not working, said Bianco Research's James Bianco. At some point, though, it will start to work — and there will be massive inflation at least as bad as the 1980s. Bianco said the Fed's challenge in withdrawing the liquidity it has pumped into the system will be bigger than anyone suspects.

Michael Darda of MKM Partners said we're in for a long string of ghastly economic figures. They point the way to "the collapse of the consumer." He sees a return to frugality, with households holding back 8 to 9 percent of disposable income, an $800 billion hit to the economy.

Comment - whether the govt's plan works or not is irrelevant to inflation. When you pump the equiv of 7 trillion into bailouts - inflation eventually has to come out the other end... That is almost the amount of all debt the govt has run up for the last 80 years!

In the meantime - there might be deflation.... (which will be followed by hyper-inflation)