Thursday, November 5, 2009

Cave's Headlines | Morning November 5, 2009

MidasLetter.com | The Risks of a Catastrophic Deflationary Collapse
It is ironic that mainstream economists and politicians are barking about the end of the recession and the beginnings of an economic recovery, when the hidden reality is that the underlying health of the economic system not much better (and some would argue worse) than one year ago when panic reigned in the markets.

Oil: $20 a Barrel? Or $200?
Seeking Alpha - This suggests that if the global economy resumes its deflationary spiral down next year, then a grand imbalance between supply and dwindling demand might ...

Could the Fed Really Drain $1 Trillion in Reserves by Next March?
Seeking Alpha - This is close to criminally insane, as the Fed has been deflationary with respect to M2 money supply since April 2009 and draining reserves would only ...