Is there a difference between inflation or reflation, and whatever this is? Not mere semantics, it may be everything for what the future ultimately looks like. Yet, the only one ever talked about is the first, as if a foregone conclusion. Why?
We’re conditioned to believe in only one or the other, recession still contracting or otherwise total recovery, on top of never questioning whatever it is the Federal Reserve may be doing:
We’ve been left with the impression that the economic situation is always binary; the economy is in recession or recovery/growth. No other choices. Believing this, everything becomes a simple matter – including the most important part. In other words, all you have to do during contraction is wait for it to end. If there are only the two options, once an economy’s reached its ultimate trough all worries can be set aside. Read more…..
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Joel Greenblatt is a managing partner of Gotham Capital, a hedge fund that he founded in 1985 and Gotham Asset Management, a manager of hedge funds and long/short mutual funds. He is the former Chairman of the Board of Alliant Techsystems, a NYSE listed aerospace and defense company.