terry >Now I am beginning to think that deflation may be the future to be.
Yes, indeed, if the economy and the market were allowed to correct "naturally" for their previous excesses. However, that's no longer possible. There are so many fingers in the pie that, today, it's almost impossible to see the pie for all the hands which are messing in it.
I just know two things and they are that the Western World stands or falls on the printing of paper money and the rising of prices. If either stops then the party's over. Oh! I almost forgot, there has to be an insurmountable wall of debt. Why? Because when people can't afford to pay their way they must borrow. Anyway, if the prices fall and the debt can't be repaid there will be a catastrophe as the banks collapse.
Apropos the stockmarket, one doesn't have to be a rocket-scientist to know that the S&P, with a PE of 30, and the Naz, with a PE estimated at around 100, are both grossly overpriced, on a historic basis. Clearly, there is no investment merit in the stockmarket.
But, as the actress, after four face-lifts, said when she looked at her wrinkles in the mirror , "Vot vos, vos, baby, but ya have to put on a smiling face." |
