Tuesday, June 14, 2011

SOS Emperor without clothes


David Rosenberg (former chief economist for Canada) is 99% sure USA is going for recession by 2012.

MyView

2007-2009

S&P 500 dropped 57%

Commodities dropped 57%

Oil dropped 78%

Emerging Market, Gold, Real Estate dropped significantly

30 yr Bond dropped 26%

10 yr Tresury notes dropped 10%


Will there be a repeat? Definitely, bigger and longer. The timing may be different this time. This is a very clear Japanese case of Balance Sheet Recession that will cause a Deflation and Depression.



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