Some depressions cannot self-correct if what caused them correct. “Deflation” is surrounded by too much mumbo jumbo.

Sir, I refer to John Authers’ “The self-correcting depression and the virtue of deflation”, January 10.

Do I believe in that? You can answer that question yourself by looking at my letter that you published August 2006 titled “Long-term benefits of a hard landing”.

But I do not believe that all depressions can be self-correcting, some needs the primary causes for it to be removed. For instance, there is no way the current depression will self-correct in any sustainable ways without removing those so well intended, but still so utterly dumb, portfolio invariant credit risk weighted equity requirements for banks.

And neither do I believe in all that mumbo jumbo that is painting deflation as the monster of our times… perhaps only looking to justify doing more of what is working for some though clearly not for all.