Comments on: Painful Adjustments to the “New Normal” Economy

By: LAGirl

LAGirl — Sat, 07 Nov 2009 15:56:49 +0000

“Dead economists bounce”…can we try that with Tim Geithner when he, you know.

By: Don V.

Don V. — Sat, 07 Nov 2009 11:12:02 +0000

Hi Bill,

Just wondering: what has the Argentinian mountain air done to you?

In the same letter you describe how “Only 29% of those polled believe the
economy has hit bottom.. “.
And a few lines later you tell us: ” And now everyone is bullish, except us..”

How is everyone bullish when only 29% believe the economy has hit bottom?

By: LAGirl

LAGirl — Sat, 07 Nov 2009 10:27:54 +0000

If inflation is bad enough, can the stock market stay in place or rise even though it is falling?

By: Bloomer

Bloomer — Sat, 07 Nov 2009 05:34:48 +0000

Well for starters, I don’t think all those homeless children or unemployed people will be buying gold. I don’t think folks will be buying much of anything. In Mr. Bonners’ last brief he wrote about the need for creative destruction….

Allowing the poorly managed companies to fail will clear the way for a new generation of healthier, more nimble, corporate survivors.(to paraphrase)

One thing you never hear from any economists, including bouncing ones, is marketplace destruction. The USA has been the greatest marketplace in the world. With high unemployment and low purchasing power for consumers, that marketplace is about to get a whole lot smaller.

For those surviving enterprises, they will have a greater slice of a much diminish pie. A world of monopolies and oligopolies will not be a competitive innovatived one. Capitialism has cannibalize itself.

By: Bernardo

Bernardo — Fri, 06 Nov 2009 21:58:44 +0000

The last highs in the price of gold says us that the yellow metal can reach 2000, 3000, 5000 dls. per ounce, there are any limit. And beware, Lloyds and RBS are going to bailout again, that is a alert and the first symptom of the markets panic, next is US, Spain.

By: Eric Berg

Eric Berg — Fri, 06 Nov 2009 21:13:33 +0000

I can’t but help wonder if we are entering a stock market bubble. I’ve read that there are many large companies with large amounts of cash. This coupled with all the bailout money that banks have, it seems to me that there will be a temptation to put it into the market place thereby pumping up the stock market, irregardless of the fundamentals of a particular company. Any thoughts regarding this?

By: JMR bayou bobby

JMR bayou bobby — Fri, 06 Nov 2009 20:31:27 +0000

“As gold becomes accepted as a true store of value, we can expect more and more people to want to own it.”
___________________________________________

You were amongst the ones who said last spring that the bounce could go to 10, 10.5, even 11K. I, for one, am not surprised as we share similar opinions.

And as more discover gold for the very first time, the more will learn that real gold in hand is particularly tough to find. Oh, it’s out there, but at what price? A shortage exists as has long been established.

Of course, the poor man’s gold should do even better in a bidding war.