maxi's - 5 wives new guinea way - thursday, page-53

What I wrote

"CNBC commentators said that the S&P500 has a 100% down record over the last 5 years. Why not keep this going for a sixth year?"

may not make sense.

The "100% down record" refers to the month of June being negative for equities.

CNBC also put up an interesting chart which suggested similarities between what we have seen this year and what happened in the first half of 2010 in the US sharemarket. In 2010 the market was rescued by Bernanke announcing QE2. What will be the spark that will get the market going in the second half of 2010 in the light of the slowing US and global economies?

As for the Oz economy, the question is will the growth in QLD/WA/NT outweigh the recession in NSW/VIC (and most capital cities)? Perhaps we will get our own National Pyramid Building Scheme in full swing (NBN) (or some other madcap scheme) to pump up GDP short term and use up more foreign exchange and involve selling more of the farm. Shorting our banks may the new wealth creation mechanism over the next few years, unless interest rates stay high to offset bank losses on bad mortgages (the Paul Keating recapitalisation solution to Wetpac's 1980s lending blunders).

loki