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  • Dow Will Equal Gold in 2009 [View article]
    I am inclined to agree with the author on general principles, but I wonder whether any large sustained decline in the market won't be countered by the Plunge Protection Team (PPT).

    If blue chips tank hard and for good, it will ruin every insurance company and pension fund in existence. If there is any way to avoid this the PPT will gamble and prop up stocks hoping that they can avoid a financial disaster. What index level(s) they choose to defend and whether they succeed or not will be the issue.

    If they fail, things will get very ugly. If they succeed, they will add fuel to the bonfire of inflation the FED is building now. Either way it won't be pretty.
    Dec 04 10:06 am |Rating: 0 0
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