Comments on: How Much Juice is Left in this Bear Market Rally? http://dailyreckoning.com/how-much-juice-is-left-in-this-bear-market-rally/ Economic News, Markets Commentary, Gold, Oil and Investing Strategies. Sat, 26 May 2012 18:05:48 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: mannfm11 http://dailyreckoning.com/how-much-juice-is-left-in-this-bear-market-rally/#comment-34962 mannfm11 Tue, 27 Oct 2009 19:00:51 +0000 http://dailyreckoning.com/?p=19501#comment-34962 He isn't talking about hyperinflation now. I sense Koo is partly on the right track, but not all the way. He misses what caused the Japanese problem to persist, that the equity in real estate was gone and that the high Japanese savings rate created too much debt. The worst thing they did was cut their interest rates, which is the typical response. They had to do this to keep their export economy going when the US went into recession in 1990. Greenspan pushed Japan into the same corner he pushed the US into 10 years later. Where I believe Koo is wrong is that at some point, bad economy or not, the trend needs to be reversed and taxes increased to pay down government debt. The primary fear that is prevalent is that private debt repayment will destroy bank balances and government is needed to keep the dollar from swelling. But, government debt repayment only recycles dollars. At some point there has to be a move in this direction or we face sudden collapse. The Dow and gold may make parity at 400. He isn’t talking about hyperinflation now. I sense Koo is partly on the right track, but not all the way. He misses what caused the Japanese problem to persist, that the equity in real estate was gone and that the high Japanese savings rate created too much debt. The worst thing they did was cut their interest rates, which is the typical response. They had to do this to keep their export economy going when the US went into recession in 1990. Greenspan pushed Japan into the same corner he pushed the US into 10 years later. Where I believe Koo is wrong is that at some point, bad economy or not, the trend needs to be reversed and taxes increased to pay down government debt. The primary fear that is prevalent is that private debt repayment will destroy bank balances and government is needed to keep the dollar from swelling. But, government debt repayment only recycles dollars. At some point there has to be a move in this direction or we face sudden collapse. The Dow and gold may make parity at 400.

]]> By: Bloomer http://dailyreckoning.com/how-much-juice-is-left-in-this-bear-market-rally/#comment-34579 Bloomer Mon, 26 Oct 2009 03:19:58 +0000 http://dailyreckoning.com/?p=19501#comment-34579 We may be in for a bout of hyper-inflation, but higher wages will not follow. We will continue to see the same stagnation of wages, as we have for the last 25 years, no matter how much money the feds pump into the system. We may be in for a bout of hyper-inflation, but higher wages will not follow. We will continue to see the same stagnation of wages, as we have for the last 25 years, no matter how much money the feds pump into the system.

]]> By: InvestorsFriend http://dailyreckoning.com/how-much-juice-is-left-in-this-bear-market-rally/#comment-34557 InvestorsFriend Mon, 26 Oct 2009 02:29:27 +0000 http://dailyreckoning.com/?p=19501#comment-34557 Bill said "Now, despite 10 years of stinkin’ returns, investors still believe in stocks." If you believe in regression to the mean you might say it is BECAUSE of ten years of stinkin' returns that now is the time to invest in stocks. Just as Buffett did in the late 70's after a decade of stinkin' returns back then. Bill said “Now, despite 10 years of stinkin’ returns, investors still believe in stocks.”

If you believe in regression to the mean you might say it is BECAUSE of ten years of stinkin’ returns that now is the time to invest in stocks. Just as Buffett did in the late 70′s after a decade of stinkin’ returns back then.

]]> By: Dean http://dailyreckoning.com/how-much-juice-is-left-in-this-bear-market-rally/#comment-34291 Dean Sat, 24 Oct 2009 20:53:12 +0000 http://dailyreckoning.com/?p=19501#comment-34291 I disagree that gold is the best place to hide. Metals or commodities that have mainly industrial uses will perform better than gold. It's apparent - Given the choice- China still prefers to stockpile coal, iron ore, copper and other metals that can be used for building the country rather than buying gold. Gold is not going to create jobs for tens of millions of unemployed chinese. Public works spending will. Even for india, at some point they'll realise that the largest private holdings of gold in the world does nothing to improve their living conditions. What they'll need is highways, power stations, ports and other infrastructure. With currency debasement happening worldwide Gold could still perform well but my money is on more useful commodities. I disagree that gold is the best place to hide. Metals or commodities that have mainly industrial uses will perform better than gold. It’s apparent – Given the choice- China still prefers to stockpile coal, iron ore, copper and other metals that can be used for building the country rather than buying gold. Gold is not going to create jobs for tens of millions of unemployed chinese. Public works spending will. Even for india, at some point they’ll realise that the largest private holdings of gold in the world does nothing to improve their living conditions. What they’ll need is highways, power stations, ports and other infrastructure. With currency debasement happening worldwide Gold could still perform well but my money is on more useful commodities.

]]> By: JMR bayou bobby http://dailyreckoning.com/how-much-juice-is-left-in-this-bear-market-rally/#comment-34214 JMR bayou bobby Sat, 24 Oct 2009 12:23:59 +0000 http://dailyreckoning.com/?p=19501#comment-34214 LAG: I have prepared a state of the art bunker of doom modeled after the one presently occupied by Mogambo Guru. I recommend the version with the salted snack foods and alcohol included. One year supply. Hah! Don't you believe it. LAG: I have prepared a state of the art bunker of doom modeled after the one presently occupied by Mogambo Guru. I recommend the version with the salted snack foods and alcohol included. One year supply. Hah! Don’t you believe it.

]]> By: LAGirl http://dailyreckoning.com/how-much-juice-is-left-in-this-bear-market-rally/#comment-34175 LAGirl Sat, 24 Oct 2009 07:05:06 +0000 http://dailyreckoning.com/?p=19501#comment-34175 A depression with hyperinflation? Sounds pleasant...is there anywhere else to hide besides precious metals, Bonner readers? A depression with hyperinflation? Sounds pleasant…is there anywhere else to hide besides precious metals, Bonner readers?

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