TomF75

S&P 500 Earnings: 'The Pain of Mean Reversion'

Couldn't agree more...think about it, deflation is good for the saver, dreadful for the borrower. Since our government hasn't been a saver for 20-30 years, they will do whatever they can to induce inflation for their own self interest...regardless of whether that is good for you or I.


On Feb 19 12:11 PM constructe wrote:

> The vaporization of equity, goodwill, real estate, etc. is already
> taking place. The consumer is already deleveraging. Corporations
> are already pulling back. All as they should. It is normal in a cyclical
> downturn. The only one encouraging people, banks, and companies to
> stay overextended is the government for its own self interest. <br/>
>
> Deleveraging is fine as long as it ends in a timely fashion. Prolonging
> the downturn only risks a persistent downturn and the doldums that
> ensue from a multi-year down cycle.