Here’s the quote of the day from a story on MarketWatch.com
“The Fed is trying to provide liquidity as quickly as it can, but there seems to be an endless supply of ‘moles’ and only one mallet,” said Kevin Giddis, managing director, Morgan Keegan & Co. Inc.
Of course “provide liquidity” can also be read as “print money”, so inflation isn’t going away anytime soon. And inflation while the economy has little or no growth is the definition of stagflation. It’s 1977 all over again. Get ready for the ride!