Mark Twain

"Keep away from people who try to belittle your ambitions. Small people always do that, but the really great make you feel that you, too, can become great."

- Mark Twain

Friday, August 14, 2009

quotes from NYT article lited below: Consumer Prices Hold Steady, Easing Inflation Fears

Consumer prices in the United States were steady last month, easing concerns for now that the record deficit and huge new government spending would spur inflation.
The drop in the last year has been the largest in almost 60 years, occurring as the global economic crisis reduced demand for many goods and services.

“The inflation story was nonsense in an environment where you have such wild excess capacity globally,” said Robert Barbera, chief economist at ITG, an investment advisory business. “I think inflation is below 2 percent for the next two years.”

For all the inflation fear-mongering, the fact remains that prices have, in the near term, declined further rather than turned upwards,” Dan Greenhaus, chief economic strategist at Miller Tabak, said in a research note.

Some economists and investors have warned that the government’s rescue plans and big stimulus spending will stoke inflation as the economy heals, setting off worries about the strength of the dollar and rising interest rates.

1 comment:

Jack Dawes said...

I bieve the school that thinks we will see a strong inflationary trend in the near future are going to be right.