Things to watch

[CarmelHP]

Originally Posted by CarmelHP

As for the Dow, I don't think that 7500 or 8000 is an unrealistic bottom. There's a lot of speculative froth that still needs to flush out.

The above statement is making me look like a raving optimist around about now.

[Justus]

Originally Posted by CarmelHP

The above statement is making me look like a raving optimist around about now.

Deflation is the worry now.....

we're watching this pretty close on our forum

[CarmelHP]

Originally Posted by CarmelHP

Believe me, historically, deflations have always been more wrenchingly painful than hyperinflations. Hyperinflation at least allows a clean start. How about if your $100K mortgage was suddenly the equivalent of $2M.

I also wrote the above back on 10/10. Deflation is the one economic process that I think can bring about a SHTF violent response from the populace. Hopelessness and despair would follow in the wake of deflation, and people in our overleveraged society will not react well.