How do you translate this from Bernanke..?

Discussion in 'Ask any question!' started by internationalstocks, Jun 8, 2018.

  1. internationalstocks

    internationalstocks Active Member

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    The stimulus “is going to hit the economy in a big way this year and next year, and then in 2020 Wile E. Coyote is going to go off the cliff,” Bernanke said, referring to the hapless character in the Road Runner cartoon series.

    Do you translate the above as going off the cliff for 3 years or up for 2 then off the cliff..?

    Bernanke Says U.S. Economy Faces a ‘Wile E. Coyote’ Moment in 2020 https://www.bloomberg.com/news/arti...-s-economy-faces-wile-e-coyote-moment-in-2020
     
  2. Onepoint272

    Onepoint272 2019 Stockaholics Contest Winner

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    Other pundits have brought up 2020 as the year of a recession....just in time for the next presidential election.

    I remember when Paul Volcker was fed chief (appointed by Ronald Reagan) after the era when the government could not decide between guns and butter (war on Vietnam and war on poverty). That was the time of stagflation, recession and double-digit inflation. Volcker tightened big-time and he wasn't well liked for that but it did lead to the eventual expansion of the 80s and 90s. Now we have really low rates with much larger government and private-sector debt and un-abated government spending and any significant rise in rates will crush the federal budget and the private sector with debt servicing. I don't see any way out except to inflate away the debt...so maybe it'll be time again for stagflation.
     
    #2 Onepoint272, Jun 8, 2018
    Last edited: Jun 8, 2018
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  3. T0rm3nted

    T0rm3nted Moderator
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    I understand it as up until 2020, then similar to the Wile E. Coyote cartoon, the market will crash in 2020. That's how I understand his metaphor.
     
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  4. internationalstocks

    internationalstocks Active Member

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    Funny how they tend to say things leaving you guessing. Like saying the cup is half full where it is also half empty. Cup could be on its way up to being fully filled or on its way down to it being fully emptied.
     

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