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Strategies & Market Trends : Heinz Blasnik- Views You Can Use

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To: Box-By-The-Riviera™ who started this subject1/9/2004 10:13:23 AM
From: Eva  Read Replies (1) of 4912
 
<<< a hollow shell on the verge of collapse. >>>

Asusual, Heinz say's it best:

Date: Fri Jan 09 2004 09:59
trotsky (welcome to ) ID#377387:
Copyright © 2002 trotsky/Kitco Inc. All rights reserved
the deflatinary recession, part 2. not surprisingly, the Keynesian-in-drag Kudlow doesn't get it...in a deflationary era, falling bond yields are NOT bullish for the stock market. the traditional disinflation stock/bond relationship has in fact broken down over 5 YEARS AGO, which is how we know that we're in the deflationary K-winter.
as for the alleged strength of the US economy, it is a mirage. what strength there is, is debt financed ( at a ratio of $7 in new debt for every $1 in 'GDP growth' ) and consumption-based, and consumption without preceding production actually weakens the economy structurally, as the pool of real funding continues to shrink.
there is no sign of a pick-up in investment spending, there are no savings left, and the debt-berg has grown to hitherto unknown proportions - meanwhile, the biggest fiscal & monetary stimulus effort of all time has barely kept the economy from drowning. the US economy = a hollow shell on the verge of collapse.
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