Fed Heads Start Openly Conceding Risk of a Serious Deflation Spiral

[cieldumort]

What has been obvious to many of us (an uncomfortably high risk of a Japan-like, or even worse, an 1870s-90s-like deflationary stagnation/depression) is now in the publicly available Fed comments (and who knows what they have been and are really saying behind closed doors).

CNNMoney
Federal Reserve looks to battle deflation

NEW YORK (CNNMoney.com

Comments

[underlankers]

When the Fed says it that's pretty much an indication that if it hasn't already begun it will.

[cieldumort]

ICA

[cieldumort]

It might be a very interesting endeavor if applied over here.

[mariacotto]

What would happen to banks that NEED to build equity in a negative rate situation?

[cieldumort]

Enter problemo