Al-USA

A Junk Stock Rally

givargi wrote:
"
You need three things for capital creation :1) cheap labor, 2) cheap resources, 3) consumer market. We are running out of all of them.
"

A good description of the state of capitalism, a crisis of over-production (or demand destruction). This will play out in years though, and while 2010 will hit like a "ton of bricks", outside any external massive demand stimuli, 2009 will be the last year to "party" for the last of the trapped longs.

So, if your 401k was reduced to a 201k, use 2009 to get out with, perhaps, a 301k. Such a chance might not come again in a generation, or at least until 2023, according to the proprietary investment rate model by Thomas Kee.

Good luck to all, and yes, if you're a nimble trader, as long as the market is open, there are opportunities to make some cash.

Recent Policy Decisions and a Greater Depression
seekingalpha.com/artic...