Quote:
Originally Posted by Claeren
^ That is why my initial post today said 'accelerated Japan' scenario.
I think America can potentially (though far from 'for sure' ) get through all of this in waaaaaay less than 19 years.
That is hardly a ringing endorsement for investing heavily in equities at this moment.
Claeren.
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I fully agree. The Dow will soar to 20,000, but in real 2008 terms even then it probably will only be 9-10,000. Kaynesian economics is total BS because the government is incapable of efficiently allocating money and after some organizations/government departments get used to getting topped up with free money from the government they'll fight to the death to keep their funding when times turn good again. Has anyone learned anything from the 1970s and 80s? How much of the National debt incurred in the 70s and 80s was paid back in real terms in the 90s and 2000s? Certainly not enough to adhere to the Kaynes principle of spending when times are bad and saving/paying back when times are good. Considering that when it comes to the national debt, we're actually in better shape relative to other countries, that's sad.
This bail everyone out and spend like drunken sailors on infrastructure and government jobs BS is just going to cause huge stagflation in a couple of years time because price pressures will be up, but productivity will actually decrease. Oddly enough equities will be one of the only places to protect your cash in such a time. So yes 20,000 but not in real income terms.