All this talk about GFC 2, not sure if anyone has noticed but GFC 1 is still going strong. All the bad debt that created the problem still exists, Governments the world over have have been handing out money hand over fist and creating so called debt holidays which only last for 2-3 years. This months storm may pass and we may even get a new 12month high for the markets due to these absolutuley enourmus stimulus programs although seeing as the debt is only being replaced with more debt this can only be called the biggest dead cat bounce the world has ever seen. The only thing that is worse than a private company being swallowed by it's bad debts is a country getting swallowed by it's bad debts. Europe WILL NOT collapse first, the mother of all things big the good ol USA is finished, caput, finito, as soon as people realise there currency is worth nothing everyone will dump it, which inturn makes the governments cost of finance go up, with a declining tax base, ageing population and still rising astonishing levels of debt i'm afraid it's not a matter of if but when. Personally i think 2011-12 as this is when the biggest portion of the debt holidays come due. DOW 5000 is a distinct possibility over the next few years!
PS: The current Euro crisis is actually helping the US at the moment because the cost of the governments financing is extremely low because everyone wants thier dollars, it's no cure but at least it's delaying the inevitable.
