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Strategies & Market Trends : Technical analysis for shorts & longs
SPY 689.100.0%Jan 23 4:00 PM EST

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To: Logain Ablar who wrote (44564)2/20/2008 4:18:38 PM
From: Johnny Canuck  Read Replies (1) of 69974
 
It is interesting to see the shift in pyschology.

Here in British Columbia we have a fiscally conservative government. They ran on a balanced budget platform years ago and the provincial budget has been in surplus for the last 7 years or so. The recent budget that came down yesterday predicted a deficit. That deficit is predicted to grow over the next few years at a rate of 6 percent per year.

We may be seeing a shift back to increasing debt and high inflation after about one and half decades of fiscally balanced budgets and low inflation in many countries.

It is interesting that some central bank may be actually be open to considering Reganomic style spending to get out of the current slump. Keep in mind Reganomics ended in one of the biggest economic hang overs we have seen in recent history.
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