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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 386.87-0.1%Dec 3 4:00 PM EST

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To: elmatador who wrote (41340)10/14/2008 9:33:06 PM
From: THE ANT1 Recommendation  Read Replies (2) of 218163
 
It will not help.Credit hit 380% of GDP and it is inherently unstable at this level and collapsed on itself.Credit must fall to 150% GDP.When credit falls all assets fall.Housing to return to 4-5X income level and stocks to 10-12X earnings.All of this in an environment of a recession and 9-10% unemployment in the US.People will not borrow and banks will not lend until these long term ratios are restored,otherwise the risk is to great.Now add a socialized government/banking system and we are screwed.I will ride EWZ for the bounce and then load up on shorts.They can try to inflate us into our income but if bond rates rise houses fall more.I am not sure they really care about houses any more.Banks will be stabilized at all cost and money lent to buisnesses.It is better for the US to have housing fall as long as it doesnt sink the banks.The consumer is a goner
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