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

To: mishedlo who wrote (72858)	12/26/2007 7:27:24 PM
From: George K.	Respond to of 116555

Maybe there are differences in what precipitated the Japanese and US slowdowns but I see the result being quite similar - a deflation - which to me means falling demand and falling prices for almost all financial assets held by Wall Street and Main Street - real estate, bank equities, commercial paper, derivative type "securities" - plus a stunning and persistent fall in loan demand. The Japanese banks had bad RE and corporate loans, plus fraud. The US banks and related investors and funds will have the same - plus all the derivatives thereof. So in my oversimplified way of looking at things, I see the FED driving rates way down next year.