I am the eternal wrote: > On Wed, Apr 8, 2009 at 10:42 AM, grate.swan <[email protected]>wrote: > > >> Its less important how fast things fall than how fast it rebounds. A faster >> fall and quick recovery is better than a long drawn out (but slower) fall >> and slow rebound. >> >> >> > A quick recovery could result in hyperinflation. The US at least has > manufactured and pumped into the economy an amazing amount of money. This > money could result in money racing after goods at an amazing rate. We seem > to be in a cycle of this happening: too much money racing dot.coms, chasing > real estate. I wonder what all of this money will chase before the Fed and > this time the US Treasury figures out we've got a problem? I highly doubt we are going to see a quick recovery. These little "rebounds" are just that: little. The market goes up and down but one should draw a line through the median of those and watch the decline. If one likes gambling in Vegas then the are probably enjoying gambling with the market. I do neither. I even got a glowing email newsletter today from my broker who of course wants me to buy, buy, buy because that is how they make their money. Sorry, I'm not that stupid. Buy, buy, buy = lose, lose, lose.
I suspect it may be as much as 10 years or more for the economy to recover. Putting band aids on it won't help so be leery of those. They usually just delay the infection. A war might obfuscate it but there was massively unemployment after WWII too. And after a world war this time there might not be any humans to have an economy. All I care about is being able to live out my life simple and humbly. I really don't need a monster home, a fleet of cars nor a yacht or even a summer home. Some people think those are a "standard" of living rather than perks. Boy are they going to have a rude awakening.
