09 Oct 2008

Markets Get Crushed Again

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Well, for what it’s worth, people in the stock market are at least starting to wake up to the fact that a printing press isn’t nearly as useful as those replicators in Star Trek (the episodes with Patrick Stewart, not the earlier ones with William Shatner). The S&P 500 lost 7.62% TODAY, and is down more than 34% year-to-date.

I hate to spoil everyone’s day, but imagine how bad it is going to be when the next president–and I think it hardly matters which of the two wins–tries to “fix things”? E.g. I saw a clip of McCain saying if elected, he will take care of the rising gasoline and food prices causing American families to suffer. And I don’t think he had in mind a return to the gold standard.

It sure looks like there will be double digit inflation (even by official measures) by the spring, which will probably lead to price controls and hence shortages of essentials. If only the politicians would first try out the price controls on things like Chia pets and tofu, before applying them to gasoline and milk.

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