Doug Noland: Liquidity Supernova and the Big Ugly Flaw

``There's no cure for major asset Bubbles other than unwinds. Once asset inflation becomes the prevailing inflationary manifestation it becomes impossible to inflate away the problem. Instead, central bank efforts to spur general inflation only exacerbate Bubbles and maladjustment. That's The Big Ugly Flaw in this runaway global monetary experiment. Back when he served as president of the Dallas Fed, Richard Fisher espoused some cogent advice for global central bankers: The law of holes -- when you find yourself in a hole, first you must stop digging. Well, the problem today is that instead of heeding Fisher's "stop digging" they came together, called in the big backhoes and have been shoveling fanatically ever since.''