things that bang in the night, page-48

Farsight,

The EU and Japan hold trillions in dollars of US stocks. They can't all exit at once, would create a monumental crash.

I suspect letting the DOW appreciate some more and sell into strength might be the go here.

Just as we have seen with our market lately.

This selling I feel from Europe will increase, and the ones left holding the bag will be the Japs and Yanks.

The japs don't really know what to do, as they really have become disillusioned with the world markets, and don't have the impetus to move on. Because of past political mistakes, like invading China a number of times, have had the door closed in their faces, barring any real expansion in asia for them, when they really need it to stimulate their own economy.

This stagflation that we have witnessed in japan over the last 5-6 years, could be the unwinding of the bond and stock markets globally, when at some stage the japs decide to bring some money home to nest.
This is when we could head into a depression far greater than the 1930's/

Japan holds more US debt than any other country, and could be the key to the next bear market,


Just my musings as usual

Brewster