Bruce from Australia

Market and Economy Predictions for 2009

What? no mention of employment- which drives demand and confidence?

The Fed can print money til the cows come home, but:
- which bank is going to freely lend it out to people who can't afford to pay it back?
- which bank needs to retain capital to offset bad assets?

Let's face it, rates might be looser, but lending criteria is tighter.
Add that to reduced consumption, frugal being the new black, and you have a positive feedback loop that won't be easily beaten by helicopters.

One way or another, assets are going to deflate a lot more before a recovery appears on the horizon.