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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (48134)	12/24/2005 4:09:26 PM
From: UncleBigs	Read Replies (1) \| Respond to of 110194

"They are likely to be very aggressive if the economy slows. That is not going to make cash safe I think it is human nature to believe the recent past will be extrapolated into the future. I agree that Greenspan has destroyed the holder of cash over the past 5 years and that memory is quite fresh in the minds of savers. It's the psychology behind "I must always be long on something or I'll get left behind". Inflation and deflation is as much a psychological phenomenon as monetary. After getting burned on stocks in 2000, real estate/stocks/everything in 2006/2007, I don't think you'll see people wanting to take even greater risks after that. Safety, preservation of capital will be taking hold. That will be difficult to break. Japan had 0% short term rates and 1% long rates and that still didn't do the trick.