[mynameishere]

History promises inflation, not deflation. The great depression was deflationary, but the great depression did not feature helicopter Ben at the helm. I suspect Paulson's recent decision to not purchase troubled assets has a simple genesis. Bernanke is doing it instead,

http://www.bloomberg.com/apps/news?pid=20601087&sid=aatl...

Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn't require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.

Well, I doubt Ben would buy quality securities since quality securities are usually sold on the open market.

[crabapple]

History promises inflation, not deflation.

BINGO

all that money being printed now with reckless abandon, and the tens of trillions more we will print as the boomers retire...its gotta chase something...it will chase commodities through the roof. oil will go to $500. your weekly grocery bill will be over $1000. now's a great time to stockpile the black stuff before it goes crazy. it will be amusing watching futures traders get gutted as they open up shorts on oil futures presuming it will keep falling...

[kiplinger]

What are you on? I ask because in another post you say "real estate" will lose 50%, if that is true, then you have a severe price drop in a non liquid asset, also if the recession is as severe as you say it will be, then people will not be spending any money on goods which will drive the price of most goods down resulting in a period of immense deflation, which can be equally damaging.

I don't have an advanced degree in econ like you may, so I don't really get what you are saying but you seem to be "amused" by being overly negative. you are making Roubini sound like a shiny happy person.