Tuesday, October 07, 2008

Warm up the helicopters...

Federal Reserve about to turn on the printing presses by buying commercial paper.

Yep, time for another helicopter drop of dough from Helicopter Ben, as he tries to prevent a deflationary spiral from Hell (or at least 1930-1931) from breaking out. Will it work? Well, it depends on how many helicopters ole' Helicopter Ben has, I suppose...

-- Badtux the Economics Penguin

(Who, despite the snark, agrees with Ben that this is the sort of situation where the alternative of a liquidity trap is worse than the inflation that a helicopter drop might create).

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