Size doesn't count!
- Mar 30, 2010
Errrrrrr... no... I can't why it would need to be. Are you talking price inflation or proper inflation? It should drive the USD up which will ease import costs if anything... domestically it will depend where the money is parked. If they buy back stock etc it may reflect in market 'inflation' of some sort. If it is invested in business domestically, new plant and equipment etc much of that will just go back OS... if it hits wages in competition for talent then you may get some flow through to street prices, but is it that big?! My best guess is it gives a short term USD bump (gold beware) and that benefit is just adsorbed by business rather than passed on, simply because its a one off. (correct me if needed, I'm not following the deal closely at all) I think it will ease pressure on the bottom line for businesses... for a while.
What is the structure of this deal? I must go read... maybe I'm well off track here.