Comments on: This Bear Market 2008 Could Last 20 Years

By: ralph hill

ralph hill — Thu, 23 Oct 2008 05:36:00 +0000

inflation is the hidden tax. it may 'shrink' gov't debt over time in one of those sneaky sweep it under the rug affairs. but eventually you have more dirt than rug.

but the more severe inflation gets, saving doesn't pay. without saving there is no capital formation and investment.

after they run out of bandaids, it's all over.

By: Andrew

Andrew — Thu, 23 Oct 2008 00:31:30 +0000

Possibly you are American. I think the US will be suprised at how little the world is willing to put up with additional and aggregious bumbling. The fin de sicle presidency of GW Bush has exhausted the last ounce of patience, and I think what will happen is that people will shift out of exposure to US debt. You think you have a current accounts problem now, try paying for oil (and gold) in Euros. The value of loans taken out with little green pieces of paper is looking pretty shakey.

By: Karl

Karl — Wed, 22 Oct 2008 22:04:27 +0000

Inflation is a good thing. The US could use it to shrink their debt. Of course this means everything goes up in price but so long as the banks give credit to buy it, it matters not.

I also think the rest of the world will run around madly with bits of wire and stickytape and blu tack and hammers and nails and long pieces of wood to prop up a sagging US.

Why's that? Well as the saying goes (adjusted for inflation) Owe the bank a billion and you're in trouble. But owe the bank a trillion (or 10) and the bank's in trouble.

I think before this is over we will be shocked and surprised how long the world puts up with the US' bumblings, and what measures they go to to ensure they keep consuming.

Unless they can turn China into a consumer rather than a producer, or India, we have no chance to match the demand (greed) of the US

By: mandingo

mandingo — Wed, 22 Oct 2008 13:53:08 +0000

Hi
Just as a general observation, would you clarify the use of billion, trillion and the number of zeros used when reporting financial news in Australia.

By: Bruce Brymer

Bruce Brymer — Wed, 22 Oct 2008 09:51:13 +0000

Hi - It seems obvious to me that the credit for the USA will dry up when countries like China have to redirect outgoings domestically to re-invigorate internal demand. Could be a problem if they have to call in any $US.