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


To: bart13 who wrote (88570)11/6/2007 8:44:54 PM
From: John Vosilla  Read Replies (1) | Respond to of 110194
 
'I don't see gold correcting below $600 or so... and also remember how bummed my father was when gold dropped from about $190 to about $103 in the 1975-6 period.'

We could be on the back side of the 1974-75 downturn already headed towards 1976-80. Somehow the PPT averts recession and (or) a huge back up in long term rates this time?

Perhaps with added fuel just like the asset class of choice coming out of the 1998 'crisis'?
Message 24028390

If you look at the ratio of gold to oil being at 20/1 in 1980 or to the DOW at a near 1/1 it shows how financial engineering, supply side economics, deficit spending and disinflation from about 1980-2003 disproportionately benefited financial assets and other assets such as coastal RE (masked during bubbles as a financial asset). Sky is the limit on the back side of all this as we are early in that new cycle..