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

To: mishedlo who wrote (90661)	11/21/2008 4:06:37 PM
From: diddlysquatz	Read Replies (2) \| Respond to of 116555

Mish, give your basic thoughts as to why gold would do well in a deflationary environment. I would think that hard assets would do poorly in deflation.

To: mishedlo who wrote (90661)	11/21/2008 4:35:59 PM
From: SouthFloridaGuy	Respond to of 116555

Mish, I think the hedge fund deleveraging could be coming to an end in a few different asset classes. Before the equity indices began the day-end rally, there were marked moves in swap spreads, mining stocks, converts, etc.

To: mishedlo who wrote (90661)	11/21/2008 6:27:42 PM
From: John McCarthy	4 Recommendations Read Replies (1) \| Respond to of 116555

Peter Schiff would agree with you - and is succinct On Thur - Fast Money Friday - Bloomberg Said: 1 - we spend money we don't have 2 - to buy goods we don't produce 3 - the government should get out of the way and let us collapse because thats the only road back 4 - we should have had a recession in 2001 but GS screwed that up and therefore; 5 - this R/D is going to be really bad 6 - simultaneously the dollar will collapse and at some pont hyper-inflation will kick in He underlined ---------------- A - the dollar will crash B - gold will hit $2000 in 2009 both audiences were speechless but the fast money folks agreed he called out this melt-down in April 2007 - and he did: the guest on Bloomberg tried to explain to Schiff that he did "not understand" and that the banks were like dried-up sponges and therefore as the gov't poured printed money into them -- because of the sponge effect no hyper-inflation would take place - I assume the guy thinks that the rest of the world would buy US Debt at any price and the foreigner who use to sell us a toothbrush for 1 usd will still sell us another one for the same price no matter how many dollars we print the fact that gold went up today - to me - is DIRECTLY related to Peter's comment yesterday the simple fact is that thru the last 3000 points on the DOW - gold is hard-wired to $750 - so on a relative basis its doing fine regards John