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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 386.47-0.2%Dec 5 4:00 PM EST

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To: Oblivious who wrote (76970)7/27/2011 11:59:42 PM
From: THE ANT  Read Replies (1) of 218195
 
There are three legs to the stool of asset value/wealth
(1)income stream
(2) interest rates/ease of money
(3)positive or negative sentiment (between bubble or bursting bubble)
In the long run only income stream matters as ease of money and sentiment go back to average eventually.All the world has bubbled assets which want to fall but are held up by easy money.We are afraid to do away with easy money but this will crush GDP growth in the long run as the money is being lent out to nonproductive ventures which should be allowed to fail or to hold up housing which should be allowed to fall.That is one of the reasons the world is slowing.In the meantime there is not enough cash flow to sustain assets at current levels.Again you cant fool mother nature(you cant create wealth out of thin air as the Brazilians tried and failed to do over many years)
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