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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: TobagoJack who wrote (62062)4/16/2005 7:34:00 AM
From: Maurice Winn  Read Replies (1) | Respond to of 74559
 
<I think DOW is on course for 5,000 and under, and the Dollar will also collapse by another 50%, bring a semblance of balance at 75% death-level discount across most asset classes via galaxy-wide re-pricing.>

TJ, if financial relativity theory is applied by Uncle Al KBE and his central bank counterparts, and counterparties in the exchange rate business against the USD, then all can have a lot of fun. If each central banker halves the length of their currency units, then it will take twice as many of them to bridge any particular gap. The financial size of everything will seem unchanged.

So, in 2004 dollars, the Dow might be 5000 as you say, but in 2006 dollars it is more likely to be 10,000. Such deflationary fun that you describe can be avoided by the simple expedient of such financial relativity theory.

I'm sure the central banks will continue to take such actions as they have been doing. With Chinese and Indian maths, combined with the biotelecosmictechdot.com productivity boom, enabling lower prices despite such vast dilution of currencies, inflation is unlikely to be a big deal.

Mqurice



To: TobagoJack who wrote (62062)4/16/2005 6:47:46 PM
From: Snowshoe  Read Replies (1) | Respond to of 74559
 
>>My short positions, comprised of housing, sub-prime, internet, and retail, both direct and via long LEAP puts, are officially in the money now.<<

Congrats, Jay!

>>I think DOW is on course for 5,000 and under, and the Dollar will also collapse by another 50%, bring a semblance of balance at 75% death-level discount across most asset classes via galaxy-wide re-pricing.<<

So the USD will rise vs. Dow and US housing, but fall vs. what? Euro? Yen? Renminbi? Loonie? Aussie? Oil? Copper? Base metals? Gold?