Grant - I think you are putting on a brave face and ignoring history. I agree with the prognosis of a recession and a similar malady afflicting Japan unless remedial action is implemented urgently. Only problem is what do you do ----. Everyone told me when the Japanese bubble was at it's peak it was different despite all the warning signs their banks were broke-everyone said it was different at the peak of the USA bubble - productivity was the key-and now we have huge bank exposures being hidden in the USA -about to be revealed shortly!! Now all the donkeys in the financial press are advising people to buy shares -it is a good time. Even Macdonalds sales are down and the miracle here in Australia is over according to press reports today.My prediction of the DOW at 5,500 is still on track -death by a thousand cuts. Capital and consumer spending if not already on strike is about to be confirmed on strike full stop. Comparisons with 1929 are meaningless anyway -it is a changed world but nevertheless a Japanese style situation internationally is almost assured in my opinion. Go gold -there will be a sufficiently robust economy even in severe deflation for those holding gold to live quite nicely as they have done in Kalgoorlie in similar times.
