>> Capital is beyond tight. It’s not gonna get pried loose for anything except a really good bargain.
And inflation? Will that pry it loose from safe investments, simply out of necessity to protect it?
(We’re in for a healthy dose of the “big I”, I fear.)
I don't know. Ultimately there's only one investment that's perceived as safe, and it isn't gold at 1030 an ounce.
And there's your proof that we're already experiencing Big I inflation -- commodities prices. That's been no secret for several years, although it's been treated like one, for the heed its gotten.
I made mention somewhere on FR — I think it was on the Massachusetts Fed thread — that Henry Paulson’s comments on the Stephanopolous show would scare the begeezus out of any market. It was absolutely among the worst sentences he could have uttered. I heard a clip — even his tone of voice sounded shaky.