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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (640327)	10/7/2004 10:33:41 PM
From: Enam Luf	Read Replies (1) \| Respond to of 769670

agreed... i've been predicting stagflation since the dotcom bubble burst. the fed is in a box, unable to raise rates too far without tanking consumer spending, and unable to lower rates without flooding the market with liquidity. massive consumer and corporate leverage, combined with the explosion in derivitives and hedge fund trading, and the climbing price of oil is a recipe for low returns for years to come. but then again, the free ride of Return on Equity that people enjoyed for 30 years while diversifying away risk had to come to an end some day. at least it's better than the alternative (a la post bubble japan).

To: DuckTapeSunroof who wrote (640327)	10/7/2004 10:36:33 PM
From: Wayners	Read Replies (1) \| Respond to of 769670

I definitely agree with the inflation. The high oil prices sure won't allow rapid growth. The growth could be smoke and mirrors too. We can produce all the products and services we want but if nobody will buy them, we've produced nothing. I'm thinking devalued dollar. Real assets of course will go way up vs. a devalued dollar. I've made sure that I have very little in cash denominated assets right now.