Thursday, May 16, 2013

CAN ANYTHING STOP THE STOCK MARKET MOONSHOT...?

IN A WORD...NO...

IT WILL NOT STOP UNTIL IT STOPS...

THAT WILL BE A CONFLUENCE OF MANY FACTORS...

THE FED SIMPLY WILL NOT STOP PRINTING MONEY ON ITS OWN...SOME EXTERNAL EVENT WILL HAVE TO OCCUR FIRST...

BUT WITH THE ECONOMY GLOBALLY IN A DEPRESSION...AND INFLATION LOW...

THE MONEY PRINTING SEEMS TO GO ON FOREVER...  

BUT AT SOME POINT THE DAM WILL BREAK...AND THERE WILL BE A SURGE IN COMMODITIES...TO "CATCH UP" WITH STOCKS THEIR FELLOW "HARD ASSETS"...AND THAT WILL CAUSE "PRICE PUSH" INFLATION IN THE REAL ECONOMY...

SORT OF LIKE THE 70S WHERE STAGFLATION KICKED IN...  STAGFLATION IN TRUTH MAY BE HOW WE "DO" DEPRESSIONS IN THE POST KEYNESIAN WORLD...

THIS BUBBLE WILL UNWIND VERY MUCH LIKE THE DOTCOM BUBBLE DID...AND THE 2008 CRASH...

SLOWLY AT FIRST...THEN ALL AT ONCE...

WHEN WILL THIS HAPPEN...?  NO ONE KNOWS...

BUT SOONER THAN MANY THINK ...IS VERY LIKELY...