Question, will the coming inevitable recession be of a ferocious (feel free to define ferocious as you wish) proportions relative to past recessions, and will it have anything to do with the confluence of events set in motion by the exploding bubbles of weak dollar, high deficits, tanking bonds, rising real interest rates, imploding home equity, and a leading/concurrent/lagging equities decline of meaningful %?
I am not competent to opine about what may transpire in Hong Kong, Berlin, Beijing, etc. US only.
No, the near, mid-term, and long-term future from my perspective will not be ferocious.
Weakness and strongness in the dollar are mere blips.
Deficits are mere blips.
"Tanking bonds" is just another way of saying low interest rates. Bad for rentiers, but we don't have rentiers anymore. Good for entrepreneurs, and as a member of the entrepreneurial class, champagne all around.
"Rising real interest rates"? Not here, not yet, probably not in any foreseeable future. Take a look at gas prices, which you can follow from Hong Kong, and "help wanted" signs -- not sure if you can follow them from Hong Kong but maybe you'll find a way.
"Imploding home equity"? Oh, LOL! My own home equity has quadrupled in the last five years. Actually quintupled but I couldn't resist cashing out a tidge to pay off old loans. Is that a bubble? I suppose it could be but I can resist the siren song. I pay cash or do without.
Equities decline? In what country? Not here, not now, not for the foreseeable future -- unless you have a short time frame for your perspective. Which, as I already posted, I think you do. Submitting to Beijing is enough to give anyone heartburn.
Jeez, Louise, Jay. We're almost as rich as Croesus here, and rolling in lovely lolly and lots of well-made, unbelieveably inexpensive consumer goods, courtesy China (thank-you-very-much).
People here are richer than we've been in my entire lifetime (closing in on 52 years and counting). It's fabulous. Wheee! I am so frickin' rich I can't believe it.
The funny thing is that I think you won't believe me. Which is fine. More fun for me. ;^) |
