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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: da_cheif™ who wrote (13394)	11/27/2012 2:14:17 PM
From: Hawkmoon	8 Recommendations Read Replies (2) \| Respond to of 33421

doesnt mean a thing...... worry about something that doesnt have a thing to do with the stock market Hmm.,. $67 Trillion in unregulated credit instruments, nearly equal to the Global GDP, and what kind of collateral is backing that credit "doesn't mean a thing"? Some of the biggest sovereign countries approaching, OR EXCEEDING 100% debt to GDP, the historic level at which it's apparent that the debt will be defaulted on, "doesn't mean a thing".. Back in 1929, the Gov't debt to GDP was around 50%. That left some "breathing space" for deficit spending (which didn't get us out of depression, WWII accomplished that).. There really isn't any nation on the planet that can afford that kind of deficit spending now. At least not one with an economy big enough to prop up the rest of the world. Economic growth is stagnated, or declining, around the globe. Gov'ts (and people) are in debt up to their butts, while their revenue sources are declining. The Fed is loaning out money at nearly 0% in order to prop up the existing financial system, but is starting to realize that it's pushing on a string.. Demand is what drives an economy.. And demand requires cash, or the ability to take out and repay credit. People are deleveraging by either paying off, or defaulting on, debt. Gov'ts are looking at budget austerity. Asset prices (collateral) are under assault from CDS and other unregulated derivatives. So.. ok.. if you don't want to worry, that your business.. Just don't pee on my leg and try to tell me it's raining.. ok? That's my take.. Hope that I'm wrong and you're right.. but "doesn't mean a thing" is not the kind of analysis I would rely upon.. Hawk