Thursday, February 3, 2011

SOS Deleveraging Unveiled by A. Gary Shilling

Interview of Gary Shilling on Bloomberg on 13 Jan 2011

This is what he said, in a nutshell:

  • Saving rates will increase from 5.5% to double digits in 2011
  • real estates stocks level is still high
  • state government is in financial trouble
  • 30 years of leveraging is coming to an end, the new phase is a deleveraging phase
  • exports improve slightly but this is not going to bring the economy out of the wood
  • 1981 to 2009 Disinflation from 16% to 3% for 10 years treasury and more to go
  • commodities is in bubble and stocks may have little legs to go

MyView

It would be wise to listen to his ideas in his new book called "Age of Deleveraging"

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