gabe borenstein

Preview from Europe: Mid-Day Sell-Off

U.S economy is consolidating for a major rebound in the period ahead.
The structural vulnerability in the key sectors has been addressed.
The fiscal and the monetary policies are aggressive and will lead to a GDP growth of 4% plus in the 4th qtr. I expect GDP expansion in 2010 to exceed 4%.
I expect the rebound to be non inflationary as it is fueled by carefully balanced monetary and fiscal policies.
Demand pull (inflationary catalyst ) is not an issue in this cyclical expansion ,something that most investors had failed to recognize.
A 100% margin on the Comex listed futures ,such as gold may bring some sense of reality into a massive speculation based on the obsolete theories .
In the meantime the stock market rally will continue as the market is undervalued and behind the curve.
Only several months ago ,Depression was a consensus.
In the meantime we are heading for a rebound of unprecedented durability.
Unemployment will decine sharply by the end of the 4th qtr.
It will decline to 3%by mid 2010.
The projected deficits will evaporate as the tax revenue increases geometrically and the U.S Treasury(Government) realizes record profits on the liquidity investments(injections).