Zeev's Turnips Patch-No Politics (ZEEV)

[CoalTrain]

There is little doubt that the economy will improve some over the next year IMHO because of UNPRECEDENTED monetary and fiscal stimulus. That said, the improvement will be small considering the huge amount of stimulus applied. And the price that must be paid a little ways down the road because of the huge Fed induced jump in consumer debt outstanding will be quite severe I think


That is why I expect a sharp stock market correction this fall DESPITE the prospect of some pick-up in the economy.


I am expecting next year to be a very bad year for Europe. Some friends of mine that own youth Hostels and in former Soviet block countries, Hungary, Romania etc. have been doing great business as the world economy has been slowing down. People who could not afford to vacation elsewhere have been taking advantage of the cheap prices in these places. Until this summer that is. This summer has been horrible even before the heat wave. When the German youth cannot scrap together enough money to travel to Budapest it does not bode well for the economy. I think also next year there is a good chance that the "creative accounting" that EU now allows is going to come home to roost compounding problems further.

CT