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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: SouthFloridaGuy who wrote (37110)	9/14/2005 9:44:20 AM
From: Chispas	Read Replies (2) \| Respond to of 116555

Marc Faber - "What I am thinking is that while the early 1980s represented a lifetime buying opportunity for financial assets and real estate, today, we may be at a lifetime selling opportunities for financial assets and real estate, though not necessarily in Asia...." (This was posted by 'mugwump' at Kitco - ameinfo.com

To: SouthFloridaGuy who wrote (37110)	9/14/2005 11:22:52 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

It will take the EXACT same to break what we are in now. It can either happen by the Fed catalyzing a recession by jacking up real-rates or it can happen by massive debt liquidation and falling CPI which raises real-rates. Apprently the Fed chooses the latter which is why this cycle has been so prolonged. Not quite. What it will take is repudiation of mal-investments and debt. There is nothing about that that requires higher levels of interest rates. Japan sat for years with insolvent banks refusing to write off bad investments. The quicker things are written off, the quicker things can get back to normal. If the FED fights this all the way like Japan, (which I suspect), interest rates may indeed drop while the LONG process plays out. Mish