......."Buffett sees "long, deep" U.S. recession"
"Buffett sees "long, deep" U.S. recession," see http://news.yahoo.com/s/nm/20080524/bs_nm/buffett_us_recession_dc.
Part of the article:
"He said the United States was "already in recession" and added: "Perhaps not in the sense that economists would define it" with two consecutive quarters of negative growth.
"But the people are already feeling the effects," said Buffett, the world's richest man. "It will be deeper and last longer than many think.""
This supports the likelihood that HUI/XAU/gold are in an 18+ month Wave 2 Cyclical Bear Market since mid March 2008. The gold sector does well in an inflationary rising interest rate economic upcycle, not the diametric opposite situation that exists now.
After the technology/internet/growth stock/economic bubble burst in March 2000, it was the real estate and consumer binge/boom (from 2002 until early 2006), fueled by rock bottom interest rates and very easy lending practices, that got the US and world out of the 2001 recession.
The problem now is, what major boom gets us out of this huge deflationary mess, brought on by the credit debacle, real estate bust, etc? Where will enough stimulus come from (forget the paltry stimulus checks in the US) to get the world out of this huge bust?
Some sectors, such as solar and wind energy (and other alternative energy sources), are booming, but, right now I don't see enough, or substantial enough in economic impact, booming sectors to make the current US/world recession a relatively brief or mild one.
If Obama or Clinton, if a Democrat gets elected, succeed in raising capital gains and/or income tax rates, that will obviously only exacerbate the deflationary bust. This is a US/world economy that needs all the stimulus it can get.
.......http://www.JoeFROCKS.com/ .
NEM XAU HUI
Part of the article:
"He said the United States was "already in recession" and added: "Perhaps not in the sense that economists would define it" with two consecutive quarters of negative growth.
"But the people are already feeling the effects," said Buffett, the world's richest man. "It will be deeper and last longer than many think.""
This supports the likelihood that HUI/XAU/gold are in an 18+ month Wave 2 Cyclical Bear Market since mid March 2008. The gold sector does well in an inflationary rising interest rate economic upcycle, not the diametric opposite situation that exists now.
After the technology/internet/growth stock/economic bubble burst in March 2000, it was the real estate and consumer binge/boom (from 2002 until early 2006), fueled by rock bottom interest rates and very easy lending practices, that got the US and world out of the 2001 recession.
The problem now is, what major boom gets us out of this huge deflationary mess, brought on by the credit debacle, real estate bust, etc? Where will enough stimulus come from (forget the paltry stimulus checks in the US) to get the world out of this huge bust?
Some sectors, such as solar and wind energy (and other alternative energy sources), are booming, but, right now I don't see enough, or substantial enough in economic impact, booming sectors to make the current US/world recession a relatively brief or mild one.
If Obama or Clinton, if a Democrat gets elected, succeed in raising capital gains and/or income tax rates, that will obviously only exacerbate the deflationary bust. This is a US/world economy that needs all the stimulus it can get.
.......http://www.JoeFROCKS.com/ .
NEM XAU HUI
Labels: Gold, Gold Stocks, HUI, NEM, Silver, Silver Stocks, XAU
posted by Joe Ferrazzano at
1:19 PM
2 Comments:
Housing is obviously in a severe recession, autos are in a recession, and, just about everything else is soft, and you don't think there's a recession now?
By
Joe Ferrazzano, at 3:42 PM
Isolated sectors of a far larger overall economy have experienced some problems. But, not nearly as much as the media would have you believe.
The economy has slowed, but continues to grow, and at a faster pace than we thought. I do not believe we are currently in a recession and I do not believe we will be in a recession at any time during 2008 or 2009.
For more details click the next link:
================================
The Recession of 2008 That Wasn’t?
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By
SBVOR, at 9:27 AM
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