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Nope !
Not so simple.
Unemployment will rise dramatically and will reach Great Depression proportions eventually, in the US.
Prices of commodities will continue to rise - and this has little to do with Demand and Supply in the short term. For example, this is grape season and grapes still remain in the Rs 60-70 range which is preposterous.
Yes, spendable surplus will fall significantly and eventually spending will gradually fall by significant amounts. Initially though, people will be in denial and continue to fight this cutting phenomenon. But eventually when you don't have any cash in pocket and CCs are maxed out, people will come down to having thairsadam (for the non-Tamils, its curdrice - a sure sign that you have hit rocky times
. The voyage from scotch to thairsadam will be a very painful one for the ones in denial. Switch to thairdsadam NOW!
Land available today in acres will become practically free (buying in those far off places just to "invest" will have people wondering in future why they lost their senses and did something so dangerous! Land in between buildings will come down from 50% to 80% - remember these figure originally came from wiseman (copyright pending 
).
While most people still do not believe it as they cannot "see" how it will happen, that is a minor issue since, when prices went up, the same people were clueless about why it went up! Come down, it will.
This bear market will last till 2012. Obviously there will be rallies in between and some will be quite big upward. But rest assured, the market is overall bearish and each fall will only bring more supply to market and prices lower. Till all the bullishness is wiped out and total pessimism prevails.
There is also talk in some knowledgeable circles that this bear will make an up rally from 2012 to 2014/2015 (look like a bull rally) and will stage a final dramatic fall in the 2015 - 2018 period bringing down popular stock indices down by as much as 80% to 90%. To my mind, this is a distinct possibility as the amount of debt that is going to get wiped out in the coming decade can easily bring indices down to 1980s to early 1990s levels. This has happened many times in the past so do not be surprised!!!
Keeping this overall structure in mind, plan your plays. Do not be wildly bullish as it will only keep you poorer for longer and on the losing side every time.
If you are prudent, you will still make a lot of money!
cheers
Originally posted by abk
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Not so simple.
Unemployment will rise dramatically and will reach Great Depression proportions eventually, in the US.
Prices of commodities will continue to rise - and this has little to do with Demand and Supply in the short term. For example, this is grape season and grapes still remain in the Rs 60-70 range which is preposterous.
Yes, spendable surplus will fall significantly and eventually spending will gradually fall by significant amounts. Initially though, people will be in denial and continue to fight this cutting phenomenon. But eventually when you don't have any cash in pocket and CCs are maxed out, people will come down to having thairsadam (for the non-Tamils, its curdrice - a sure sign that you have hit rocky times
. The voyage from scotch to thairsadam will be a very painful one for the ones in denial. Switch to thairdsadam NOW! Land available today in acres will become practically free (buying in those far off places just to "invest" will have people wondering in future why they lost their senses and did something so dangerous! Land in between buildings will come down from 50% to 80% - remember these figure originally came from wiseman
(copyright pending ). While most people still do not believe it as they cannot "see" how it will happen, that is a minor issue since, when prices went up, the same people were clueless about why it went up! Come down, it will.
This bear market will last till 2012. Obviously there will be rallies in between and some will be quite big upward. But rest assured, the market is overall bearish and each fall will only bring more supply to market and prices lower. Till all the bullishness is wiped out and total pessimism prevails.
There is also talk in some knowledgeable circles that this bear will make an up rally from 2012 to 2014/2015 (look like a bull rally) and will stage a final dramatic fall in the 2015 - 2018 period bringing down popular stock indices down by as much as 80% to 90%. To my mind, this is a distinct possibility as the amount of debt that is going to get wiped out in the coming decade can easily bring indices down to 1980s to early 1990s levels. This has happened many times in the past so do not be surprised!!!
Keeping this overall structure in mind, plan your plays. Do not be wildly bullish as it will only keep you poorer for longer and on the losing side every time.
If you are prudent, you will still make a lot of money!
cheers
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