Dawson Lodge

The Anatomy of a Bear Market

Sure there will be a time to recapitalize producers. But not when it takes $4 of debt to generate $1 of production.
What people don't remember is that the US declared bankruptcy in 1971, and the time since has been a tissue paper (FED) fantasy.
This kind of mass delusional hysteria occurs every 60 years or so, when debt-money evaporates faster than it can be created.
The masses remain in denial until stuffing their faces becomes painful to the wallet, and it costs a week's pay to see the superbowl.
There has been no profit for 30 years. The stored wealth of America has been incinerated to build military empires (US & Soviet).
The treasury has been looted, the capital has been squandered, the owners of the US government have
their Swiss chalets well stocked.
When you can invest a buck you have, (not a buck you borrow) and make a buck profit in a few months, that's when the cycle has bottomed.
Sell the gold and buy stocks around 2015.