Howard Davidowitz: "The Worst Is Yet to Come"......and its so true!!!!

Discussion in 'Wall St. News' started by S2007S, May 15, 2009.

  1. Illum

    Illum

    Hmmm, let me laugh back a bit. They say the US's largest export is actually the Dollar. I think of it another way, our largest export is.... inflation. Enjoy!! The world is paying for our food stamps.

    "hahahahaaha"
     
    #41     May 18, 2009
  2. Deflation will never happen except prices going lower in technology due to innovation and productivity gains .
    Deflation in real estate, commodities, big ticket items will never happen.
    Reason for that is very simple, deflation would reward savers and prudent finance managers . Unfortunately world doesn't work like that.
     
    #42     May 18, 2009
  3. Ah, I see from your profile that you hail from the wonderful, fiscally responsible land of Italy.

    Shall we discuss Italian finances?
     
    #43     May 18, 2009
  4. How does it feel to be short today guys?
     
    #44     May 18, 2009
  5. I liked the interview. At least it was not boring.
    But again the question remains not answered if the current developement (bailouts to everyone) is really so bad for the stockmarket as long as the FED also plans to keep long term interest rates down by buying into long term dept (blewing up their balance sheet). The funny thing is, that it might not be so bad for stocks after all (at least for the next 6-12 months) because we will see a very weak dollar, Bond prices held up artificially by FED interventions (but ready to implode when the FED gives up this game) and simply no alternative to invest in (do you really want to hold Cash in this dollar printing environment ?)
    What is also symptomatic for the typical US investor is that he is not able to see the opportunities given elsewhere. They only focus (like in this interview) on the problems in USA. Have these people take notice of the overwhelming gains we had in emerging markets the last months ?

    The big loser in this game will be the typical saver who saved a little money and will retire in maybe 15 years. Theres a good chance it will be worth nothing then.
    He would be better off to put it in MSFT or CocaCola stocks (of course also gold) when seeing his savings-worth going to zero. As soon as people realize having money in well established companies is better than in US-Dollar, we will see a huge rally.
     
    #45     May 18, 2009
  6. S2007S

    S2007S


    I know you would not believe this but even though my FAZ took a huge dip I ended up nearly FLAT on the day, not bad.
     
    #46     May 18, 2009
  7. piezoe

    piezoe

    Sadly, it take some folks a long time to learn that lesson. Too long.

    The US economy may be doomed. That wouldn't surprise me. But as both a trader and an investor, i am expecting outsize inflation and i am also aware that when you take dividends out of the picture what you have left is inflation. The market will inflate right along with the US dollar. So i buy foreign stocks , especially commodities, of countries with more stable economies and currency. Then i sit back and watch inflation in the US do its dirty work on my behalf.

    I don't know, and i don't care if the doom sayers are right or wrong. But if we have a depression in the US and deflation, then i'm screwed. So be it. I'll take my chances on the side of inflation, which is where modern economies with fiat currencies have always gone. Let the chips fall where the may.
     
    #47     May 18, 2009
  8. Why there will be a depression.

    Why the dollar will increase in value.

    Why there will be deflation.

    Why the fed printing money isn't going to cause inflation (well not yet anyways!)

    Why the whole way we think about economics and inflation is flawed.


    http://www.debtdeflation.com/blogs/2009/01/31/therovingcavaliersofcredit/

    http://zerohedge.blogspot.com/2009/05/exuberance-glut-or-dollar-euro-short.html#links

    http://zerohedge.blogspot.com/2009/05/chasing-shadow-of-money.html#links

    http://globaleconomicanalysis.blogspot.com/2009/02/fiat-world-mathematical-model.html
     
    #48     May 19, 2009
  9. piezoe

    piezoe

    Please PM me when deflation arrives so i can get my money out of the market and put it under my mattress. :D
     
    #49     May 19, 2009
  10. Where I see this form of post on ET, I KNOW that we are headed much higher in the stock market major averages.
     
    #50     May 19, 2009