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June 8, 2009

Hyperinflation? – Part 2

Not only will the Federal Reserve have to raise interest rates by year end, most likely they’ll have to continue to raise them.  To what levels I’m not sure but they’ll try to control this massive inflation bubble (stock bubble, real estate bubble, now inflation bubble? hmmm) by raising rates to possibly over double digits.

Signs that the global economy is emerging from the deepest slump since World War II are fueling bets the Federal Reserve will raise its target interest rate by year-end, futures show. [by Justin Carrigan]

I liquidated my entire position in bonds last week. You can’t double the national debt and not expect nothing to happen financially.

This entry was posted on Monday, June 8th, 2009 at 5:51 am and is filed under 401K, Stocks, Trends. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

2 Responses to “Hyperinflation? – Part 2”

  1. Quarrel said:
    June 8th, 2009 at 6:42 am

    Just to get it down in writing-

    You’re reading this wrong. Yes, some markets are worried about inflation, but in 6 months time the fed will be desperately looking for new measures as it loses its fight against deflation. The makings of some great contrarian trades are being setup right now.

    I’ll look back on this in a few months are we’ll know more of course :)

    Be versatile and vigilant!

    –Q

  2. Tom said:
    June 8th, 2009 at 9:14 am

    Quarrel: I think deflation will be a problem, right after we get hyper inflated. Stocks will likely regain a lot of their losses before the party stops and then we’ll see a larger sell off than ever. Hyperinflation first, then hyperdeflation second is my story!

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