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

To: Oblivious who wrote (76970)	7/27/2011 10:06:49 PM
From: Follies	Read Replies (1) \| Respond to of 218178

Wealth always exists, no matter how it was made. But how do you hold on to it?

To: Oblivious who wrote (76970)	7/27/2011 11:41:44 PM
From: THE ANT	2 Recommendations Read Replies (2) \| Respond to of 218178

True wealth is held up by an income stream that exists even when interest rates go back to unmanipulated levels.When interest rates are held low and money easy it bubbles asset values.These asset value can only be maintained if debt/GDP stays high (money easy).I will argue that long term US sustainable debt/GDP is 150% which is about the 100 year average.We are at 390% debt/GDP and the government is holding this up.The problem is this leads to mal allocation of capital and falling GDP.You cant fool mother nature.You cant prevent a recession.They are trying to stretch the recession over 20 years to make it less noticeable alla Japan.Elroy Jetson please come back to these boards with your graphs and insight pragcap.com

To: Oblivious who wrote (76970)	7/27/2011 11:59:42 PM
From: THE ANT	Read Replies (1) \| Respond to of 218178

There are three legs to the stool of asset value/wealth (1)income stream (2) interest rates/ease of money (3)positive or negative sentiment (between bubble or bursting bubble) In the long run only income stream matters as ease of money and sentiment go back to average eventually.All the world has bubbled assets which want to fall but are held up by easy money.We are afraid to do away with easy money but this will crush GDP growth in the long run as the money is being lent out to nonproductive ventures which should be allowed to fail or to hold up housing which should be allowed to fall.That is one of the reasons the world is slowing.In the meantime there is not enough cash flow to sustain assets at current levels.Again you cant fool mother nature(you cant create wealth out of thin air as the Brazilians tried and failed to do over many years)