Running_Man
Thinks s/he gets paid by the post
- Joined
- Sep 25, 2006
- Messages
- 2,844
Running Man,
I WILL ask as your posts always seem so lucid. Personally, my fear for after Sept. - Dec. is inflation.
The following is my fears of what may occur, hopefully I am wrong on this.
At some point shortly the market will cease going down, as most of the weak hands have been shaken out.
As the promises to fix the problem by the present administration will overshadow concerns of the potential ineffectiveness. However by fall, the need to sell US treasury notes for the actual promises given will be showing up as a massive global strain while at the same time state governments will be reviewing their upcoming state budgets and those will be bleeding red ink, causing a crisis in municipal and government bonds.
At this point faith in the recovery will evaporate and with it the stock market prices as they collapse in the fourth quarter to a new bear market low. The ability of spending a few trillion dollars will come as a process that was able to defer but not prevent the implosion of 50 trillion plus in imploding debt assets. However, for a time I think we will be better...