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

To: mishedlo who wrote (67350)	8/9/2007 3:29:02 PM
From: Chispas	Respond to of 116555

"President Bush isn't worried about economy or stock market" ........................... Just when you were starting to get worried about the market's recent jitters. Relax. The man who declared "mission accomplished" in Iraq more than four years ago says not to worry. Everything is fine! According to a piece in today's Wall Street Journal, Bush is optimistic. Here are some choice quotes from his remarks to a small group of reporters (apparently most had better things to do than listen to the president give his market forecast -- perhaps they were watching Man Band on VH1): "If markets are given a chance, they will adjust in a way that is a necessary reaction to a flood of liquidity that came into the market over the last couple of years." "I happen to believe the war has clouded a lot of peoples' sense of optimism." "It all depends on if you're a glass-half-full or a glass-half-empty kind of guy." With Mr. Bush's approval ratings hovering at around 35%, the glass is considerably less than half-full for him. More like 65% empty. It's really a sign of the president's lack of credibility that no one really cares what he thinks about the economy at this point. .............................. bloggingstocks.com

To: mishedlo who wrote (67350)	8/9/2007 5:59:57 PM
From: Tommaso	Respond to of 116555

" A recession is coming." But that does not mean that food, oil, natural gas and some other commodities will be cheaper. Furthermore, U. S. economic arrangements are so demoralized by cheap fiat currency that even if Bernanke holds firm, the Congress and most likely the President will try to legislate and direct remedies. Fannie Mae is already about to increase its mortgage lending, as soon as it is allowed to do so, on extravagant McMansion loans. There is already talk of bailing out defaulting "homeowners." The richest bankers and the poorest borrowers are in league together. I think that the dollar will decline 50% in value in the next four years, if not sooner. That means that all consumables will increase in price by 100%. This can happen even as recession overtakes housing and what remains of U. S. industrial capacity. Mish, we're not on a gold standard. The patterns prevailing from after the Civil War until the 1970s are no longer valid. If by "recession" you mean a contraction of real economic activity, yes. If you think that means an overall decline in consumer prices, no. In you think that housing prices will continue down, yes. If you think that food and gasoline will be cheaper, no. Actually I am more pessimistic than you are.