| Sharck...I have been calling for 10,000 at least on the nikkei since it was back at 12,000. The spiral has already begun, and there is a global recession already. And whether, the US is ready to admit it or not, we are in a recession as well. The GDP numbers don't tell the story and when you factor in things like inflation, trade deficits and so forth, our growth was pretty negative already last quarter. The US and Japan have different reasons for taking that paths they did, but the outcome will be the same. And don't count on interest rates bailing us out. It's not the answer. We can go all the way to zero interest rates and it won't do squat to jump start our economy.If 3 1/2% points in 9 months doesn't do it, then it's not working. The problem lies in the fact the the US is a debtor nation exactly as you say. Simply put, we cannot pay on what we already owe and no interest rate reduction will cure that. |
