Interestingly, 2021 would coincide nicely with Strauss-Howe generational theory. According to their theory, we have another 10 years or so to go in this crisis phase.
http://en.wikipedia.org/wiki/Strauss-Howe_generational_theory
We’ll be lucky if we ONLY have 15 years of a crappy economy. I really think it will be closer to 50 years.
My goodness, if this isn’t a buy signal, I don’t know what is.
Hah! The Fed. The Fed couldn’t hit the ground with a hat.
Not that Fed Economists have a track record of predicting anything, I wonder what they see for the future of Freddie MAC and Fannie Mae? Oh I know, they need more money to keep going.
Nothing like a BS prediction from the Fed the send Wall St. on a buying spree!
I don’t have time to find the numbers, but my recollection is that at last check, “people”, ie individual “Retail” investors make up less than 15% of the amount of money invested in the stock exchanges. The balance, 85% is foriegn companies, institutions, pension plans, etc. Thus............this whole line of logic is flawed and unworthy of further consideration.
I don’t know that I agree with their 15 year prediction, but I could see a secular bear of 6 to 8 years, easy.
People need to realize that debt deflations are different than “normal” recessions. Debt deflations take a long time to work out, and longer if the government keeps messing with them. Some bond holders in banks need to admit that they’re going to take a loss, and the government needs to quit propping up banks run by idiots.