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.

New Models Show $700 Billion In Credit Losses

Nice work, and your points are well taken about officials (read looters) downplaying the disaster. How about an arbitrage, sell the financials and buy the rental owners.
Are there any stocks that would benefit from a rush to apartment rentals?