rockymtnway

Battling the Doomsday Machine

While your GDP analysis and argument is well thought out, I think it fails to take into account the growth in corporate, government and consumer debt that has been used to leverage the growth of the last thirty years. Ultimately, I think there is a great deal of deleveraging that needs to take place and we've only just begun the process. While I'd love to believe that we're at the bottom, I think you're like the bargain hunters of 1931 buying in when the Dow was at 180. It took them until 1945 to break even and until 1954 before they actually doubled their money.

How Wall Street can ignore the failure of Citigroup and rally is beyond me. There's a serious desire to believe this is the 1980's or even the 1970's and not the 1930's.

Good luck to you. Personally, I'm long on wheat and rice... in my pantry!