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To: John Vosilla who wrote (1428)10/2/2007 5:06:17 PM
From: Elroy JetsonRead Replies (1) | Respond to of 1718
 
Real estate prices in London are now declining.

I just spoke to a friend in London about this, last night. Well Clapham SW12 actually, but London none the less.



To: John Vosilla who wrote (1428)10/4/2007 2:48:11 PM
From: Mike JohnstonRead Replies (1) | Respond to of 1718
 
Deflation will occur when the current dollars are no longer in circulation and are replaced with a new currency, due to years of very high inflation or possibly hyperinflation.

Those waiting for deflation will no longer be able to profit from it when it finally comes, because their wealth will be wiped out by the preceding inflation.



To: John Vosilla who wrote (1428)10/10/2007 8:59:51 PM
From: SouthFloridaGuyRead Replies (3) | Respond to of 1718
 
I haven't asked Mish because he banned me from this thread.

As far as Dow 1k, well maybe if there is nuclear holocaust.

It remains to be seen how the US markets react to this bifurcated global economy.

The global decoupling theory is holding very true right now.

It's hard to ignore. BRIC countries may only be 15-20% or so of global GDP, but with an average real growth rate of 8%, that contributes 150 basis points to real global GDP.

In short, global GDP is 4% EVEN WITH THE U.S. stagnating. And as a result of problems in Japan and the U.S. and generally low rates in Europe as well, global real rates are barely 2%.

This is an unbelievable backdrop for international stocks that have diversified global business lines.

Eventually it becomes inflationary, but right now it's inflationary for assets.