Monday, July 11, 2011

Hahaha this is what I have been saying to people since the beginning of this so called recovery


The ONLY THING kepping markets up is the FED printing money
If it was a REAL recovery then the things that caused the crisis would have been resolved. The spark for the crisis was a huge real estate bubble  that popped.
The banks that lent the garbage and the people who borrowed too much needed to go under and the savers should have been able to go in and buy up all the property and /or banks at rock bottom prices. (after a bubble prices overshoot in the reverse direction).
In the US house prices did still and still are going down but the bad debts written by the banks did not get written down and the rally in stocks started way before a bottom was reached. (the bottom still hasn't been reached).
In the Uk  though houise prices were pumped back up and in many other parts of the world such as China and Australia bubbles were pumped bigger.
Looose credit GOT US INTO THIS mess so there is n o way that more of the same and then some (think QE money printing to infinity) will get us out of it.
The debts either have to be defaulted on or payed back before we can EVEN think of a recovery and yes that means all the big banks going tits up.
When the big banks fail and after the ensuing chaos, only then will I buy stocks.
Until then the only thing to buy is Gold and Silver.
All the money printing has done is buy us some time but the resulting collapse will be much worse. True that if the FED hadn't p;rinted money we would be in a global depression, but by now we may have been coming out of it. This time I expect a Humpty Dumpty collapse.

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