The collapse of the housing bubble was why, and another
black hole is on the way. However, it will not be here for
some time. Most double dippers (the form of this recession)
think the second dip will be sooner, but that is hard
to time, given record fiscal and monetary stimulus that won't
run out until Spring. I think the slide will actually start in
the Fall of 2010, unless folks stop funding bankrupt US
government (and jack up rates) earlier. Either way, I doubt
the DOW will see the lows of 2009 again, let alone 3200. There
is just too much printing for that to happen. In fact, so much
printing that the DOW could easily see new all time highs.
Basically, folks don't have too many alternatives about what
to do with their money. If they let it sit in cash or the
treasuries, you can count on Ben killing it and the government
taxing it. Most are not aware there is anything else besides
stocks as an alternative to cash in the bank. Most are actually
still not in the market. Cash in the bank, too, is guaranteed
to lose value.
usdcrisis.com
The problem with fiat currency system is that the Fed makes
sure there is nowhere to run, at least, inside the country. |
