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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (109965)	9/21/2008 9:56:33 AM
From: carranza2	Respond to of 206209

Sort of like 2007. Your predictions are quite reasonable. The new debt, however, needs to be taken into account. Paying it will require higher taxes and increased use of the printing press. Increased inflation should therefore be part of it. This is good for oil, gold and commodities in general. We also need to factor in the skittishness of foreign investors. Because of increased funding needs and this skittishness, interest on Treasuries should go up. We know what that does to the stock market. On the other hand, the government's funding needs should go down as military spending declines - hopefully. Provided there is a commitment on the part of government to truly reduce expenditures [including war expenditures] and if the increased value of the bailed out entities indeed takes place, the worst may be avoided. We might even have breathing room to re-consider other unfunded liabilities, e.g., the Rx Medicare benefit, etc., which threaten our future. It's going to take leadership and vision, qualities which are scarce in this day and age. I think this is the best we can hope for. The indices should trade within the trading ranges we've seen. Of course, the value of these indices will be much lower thanks to inflation. Traders should do well.