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

To: mishedlo who wrote (66523)	7/10/2007 8:18:14 AM
From: ajtj99	Respond to of 116555

Mish, I believe the S&P declines a minimum of 25% when the Fed raises to 6% and then stops. This was posted quite a few times last summer, but it has not really been in the forefront since the end of the "measured" Fed tightening cycle. As for deflation, we may have a short respite from inflation during an anticipated recession in 2008-2009, but higher prices are likely here to stay due to the diminishing benefits of what Stephen Roach called the "Global Labor Arbitrage". The cure for much of the credit bubble activity is higher interest rates. We should get that in maybe 4-years after some recessionary pain. Low interest rates cause excess speculation and, by extension, asset bubbles.

To: mishedlo who wrote (66523)	7/10/2007 8:27:24 AM
From: TH	Read Replies (1) \| Respond to of 116555

mish, A nice piece. I have grown very tired of the incessant blab-fest on CNBC that stocks are "cheap". I will be forwarding your latest to a couple of bull friends who are indistinguishable from the heads on CNBC. And, I'm still laughing from your title last week, "Employment on Pluto Rises". Classic. GT TH