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To: SouthFloridaGuy who wrote (93781)	9/4/2010 7:51:03 PM
From: Keith Feral	Read Replies (2) \| Respond to of 118717

Protracted deflation equals affordability for anyone living in the real world. It's not something that will hurt anyone's feelings as they get a bigger bang for their buck. We've got 1 year to finish off the bad loans from 2006 and 2007 as everything resets back to the old normal.

To: SouthFloridaGuy who wrote (93781)	9/4/2010 10:20:39 PM
From: John Vosilla	Respond to of 118717

'When inflation becomes unmanageable in a global framework, then sell.' We are a long way from a flat yield curve. Maybe 3-5 more years.. Hey if we collapse from there to a real great depression and 25% unemployment then Mish will be proven as right...life is too short to be so grim and negative for a decade..lol

To: SouthFloridaGuy who wrote (93781)	9/5/2010 8:54:57 AM
From: Paxb2u	Read Replies (3) \| Respond to of 118717

This will be interesting. One of you 2 guys (Mish or you) will probably be looking for a new line of work next year. Peace

To: SouthFloridaGuy who wrote (93781)	9/5/2010 9:39:12 AM
From: MoneyPenny	Read Replies (2) \| Respond to of 118717

I haven't participated on Mish's thread or the Real Estate Crash thread for year. Broken records, both. Found this article this morning from Smart Money on an idiotic article in the WSJ this past week: ""So much for the double-dip recession and a new bear market. With upside surprises Wednesday in the Institute for Supply Management's manufacturing survey and Friday morning's August jobs report, it's safe to say the correction in stocks is over. I knew this was going to be a good week in the markets when I looked in my inbox Monday morning. There was one particular email from a regular reader of this column, who was politely but firmly skeptical of my rather bullish take last Friday, which was based on the fact that consensus forward corporate earnings continue to move higher. This reader pointed me to an article in Monday’s Wall Street Journal, which stated that growth estimates are moving lower. He suggested those estimates undermined my bullishness. In fact, that is no contradiction at all. Growth estimates and earnings estimates are very different. Growth is the difference between past earnings and future earnings. Future earnings are expected to rise, as I said. However, past earnings are rising too. So the difference (growth) is narrowing. I explained this phenomenonin in a column a month ago, when I talked about how the huge operating leverage at companies, which was temporarily impaired by the recession, would lead to big earnings growth even in a slow economy. But none of that wonkish stuff was the real point of the Journal article, and it's not what's gotten me so inspired. The article was called "The Decline of the P/E Ratio," a double entendre based on the fact that P/E ratios have fallen to very low levels in this year's stock market correction and the author's contention that P/E ratios have declined in importance as an indicator of value. Does this all sound somewhat familiar? Somewhat laughably familiar? How many articles like this came out in 1999 and 2000 at the peak of the dot-com bubble, when P/E ratios had risen to stratospheric heights that, by all previous experience, indicated that stocks were massively overpriced? The articles then said the same thing as this one did on Monday -- that it's a new world in which P/E ratios don’t matter any more. Back then, many of the hottest companies didn't have any earnings at all, so their P/E ratios were "infinity." But no matter. Get your position in that pet-food delivery web site, no matter what! As we all know, the old-fashioned wisdom about P/E ratios turned out to be absolutely correct. They were too high. The NASDAQ crashed from 5,000 to 1,000 over two years. The companies that survived had more realistic P/E ratios at the end of that horrific experience. So how perfect. How symmetrical. In 1999, we had to ignore P/E ratios because they were too high. Now in 2010 we have to ignore them again, but because they are too low. That was the upshot of the Journal article. This is the way markets work. Tops happen when people become irrationally exuberant -- they ignore the warning signs telling them there is trouble ahead. Bottoms happen when people become irrationally despondent -- again, they ignore the signs telling them the trouble is over. Published September 3, 2010"" Read more: The Stock Market Slide Is Over - Investing - Stocks - SmartMoney.com smartmoney.com

To: SouthFloridaGuy who wrote (93781)	9/6/2010 9:34:51 AM
From: Dale Baker	Respond to of 118717

Sept. 6 (Bloomberg) -- Stocks rose to a four-week high, metals rallied and corporate creditworthiness improved on the prospects for economic growth. European bonds rebounded from three days of losses. The MSCI World Index of shares in 24 developed markets climbed 0.4 percent at 12:34 p.m. in London, while U.S. stock- index futures swung between gains and losses on the Labor Day holiday. The cost of insuring European corporate bonds using credit-default swaps fell for a fourth day, the longest decline in six weeks. German bunds and U.K. gilts rallied, while copper and nickel rose. The yen strengthened against the euro. “People have to recognize we’re not facing economic Armageddon,” Mark Tinker, global equity-portfolio manager in London for Axa Framlington, which oversees $30 billion, said on Bloomberg Television’s “Start Up” with Maryam Nemazee. Factory production in the U.K. grew at a record pace in the third quarter, the Engineering Employers Federation said today. The Group of 20 nations are confident that there’s a “moderate recovery under way globally,” John Lipsky, first deputy managing director of the International Monetary Fund, said yesterday. The S&P 500 Index rose 3.75 percent last week as a series of economic reports eased concern the U.S. is sliding back into a recession.