Cool chart in tomorrow’s WSJ on various scenario outcomes that could impact the economy, markets, etc.
Nassim Taleb described this at our conference last week as trying to land a plane in heavy fog on a runway with mountains on one side, and the ocean on the other. If the Fed is perfect, it avoids double dip recession, deflation or runaway inflation. Taleb is not betting on any specific outcome — neither hyper-inflation or deflation — but rather, that the macro-economists at the Central Bank simply won’t get it perfect.
In other words, what are the odds that the Fed nails the dismount . . . ?
Land Mines Pockmark Road to Recovery
WSJ, June 8, 2009