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Strategies & Market Trends : SiliconInvestor All Stars Forum

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To: SouthFloridaGuy who wrote (1321)8/29/2007 12:34:15 AM
From: John VosillaRead Replies (1) of 1718
 
'I believe the current problems are deeper than 1994 and 2000. However unlike those periods global growth is much stronger and the world appears more balanced. However, that's pitted against a Fed that won't be as vigilant in terms of protecting financial assets as the Greenspan Fed was. Net-Net the end result is probably a deeper recession than in 2000 - probably along the lines of 1990 in terms of economic magnitude but with a different policy response than previous downturns under Greenie.'

Yes much worse for the US but the rest of the globe is so much stronger. Recall the Greenspan of 1990 was an inflation hawk even when inflation wasn't the problem. Now we still have Chindia and shortages of resources putting pressure on commodities like never before and a stupid war bankrupting this country at the same time the dollar is tanking to generational lows. It is already a real estate depression in some areas rivaling the worst crashes in the oil patch mid 80's and office buildings nationwide in the early 90's..

A tough balancing act for Bernanke.. He will have to protect the bankers being squeezed on all sides these days..
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