Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Crimson Ghost who wrote (50407)	5/2/2006 2:05:54 PM
From: Chispas	Read Replies (1) \| Respond to of 116555

Basserdan reports - "Yesterday, in a turnaround reminiscent of the 1960's film 'Cool Hand Luke', the bosses at Morgan Stanley finally succeeded in getting poor old Stephen Roach's mind right. For years Mr. Roach had caused headaches up and down Wall Street for his stubborn 'failure to communicate' the upbeat messages so vital to the investment trade. Instead he was one of the most influential voices calling attention to the dangers of America's lack of domestic savings and production, growing current account imbalances, and reliance on asset-based consumption. The more upbeat Stephen Roach now anticipates the rosy 'soft-landing.' scenario. What happened to cause him to finally make lemonade from all those economic lemons? Why the G-7 and the IMF finally acknowledged that global imbalances represented a potential problem. So Stephen Roach does a complete 180 simply because a loose affiliation of government policy makers reluctantly admitted the obvious? Since when does acknowledging a problem imply its solution? Rest of article with link : investorshub.com

To: Crimson Ghost who wrote (50407)	5/2/2006 2:09:47 PM
From: NOW	Respond to of 116555

"deflation or even a severe recession simply will not be allowed to happen unless and until inflation gets so bad as to trigger a public and business outcry." Why not? Cui bono inflation vs. deflation is the key question to ask

To: Crimson Ghost who wrote (50407)	5/2/2006 2:43:54 PM
From: John Vosilla	Respond to of 116555

Keys comes down to long term rates rapidly moving up and (or) rapid decline in the dollar. If neither of these move in a big way they can keep the ponzi scheme alive. Uncharted territory for sure. The mounting twin deficits come home to roost somehow down the road..

To: Crimson Ghost who wrote (50407)	5/2/2006 3:05:36 PM
From: russwinter	Read Replies (3) \| Respond to of 116555

Steve Saville has made a very wise point about the inflation/ deflation debate.> This is no longer the debate, we are in an inflationary crack up boom, and all monetary authorities will need to act and act quickly to stem it. As the crack up boom is a very crowded, vulnerable, leveraged, and high risk trade one can only hope that they (CBs) will. Think there are signs, but enough? I've been forced to make the bet that they will, but not so sure it's the correct one. It's a bad, grave situation right now.