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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Cogito Ergo Sum who wrote (60304)1/22/2010 5:58:29 PM
From: TobagoJack3 Recommendations  Respond to of 220025
 
just in in-tray

Bernanke is really the most committed money printer available, but it seems unlikely that he would be replaced with someone that has a different view of economic theory or someone who produces a sudden outbreak of monetary austerity at the Fed.

all that said, the turn in social mood evident in the recent Mass. election and the difficulty in getting Bernanke confirmed and the attack on the banks - all of this is supporting the deflationary trend of shrinking private sector debt. it all points to the government and the Fed's generosity with other people's money diminishing in the near term.

this is very bearish for stocks and commodities imo. we can sum up the situation faced by the stock market thusly:

1. sentiment is way too bullish
2. economic fundamentals suck
3. liquidity is receding.