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


To: gregor_us who wrote (100950)2/3/2009 5:34:07 PM
From: benwood1 Recommendation  Respond to of 110194
 
I'd buy the idea of a telescoping correction except for one thing: the booms are not compacted.

What I do think can make the ripples different than the '30s is the wild, perhaps death rattle-level of response by the gov't. As a result, I expect the ride to be far wilder, except still reasonably correlated with the '30s experience. And it's not outside the realm of possibility that the system is simply destroyed either by debt implosion or hyperinflation. Those would be positive feedback responses which did not occur in the 30s. Unless you put WWII in that category.



To: gregor_us who wrote (100950)2/3/2009 11:46:56 PM
From: ItsAllCyclical  Respond to of 110194
 
When the S&P hits 400-500 then we might be approaching the 1933 equiv till then it's too early. Do agree on time frames being compressed. Big differences with the 30's of course.



To: gregor_us who wrote (100950)2/4/2009 12:26:19 AM
From: Little Joe  Respond to of 110194
 
"What I know is that we are moving along quickly. Someone recently said it's like were are telescoping the timeframe. I think we may have compacted the years 1929-1933 in to less than a year. So, this means that the second the combined fiscal and monetary stimulus catches fire, the turn could be shocking. That said I remain sympathetic to the depression thesis."

Good thought it has occured to me also, but I can't wrap my brain (small) around it.

lj.