MTar - True he does say we will continue to go up but he is looking also for a double dip later in 2010 when Government infused liquidity dries up. I can see interest rate fears beginning to grow already and if the markets are a discounting mechanism as many believe, the markets may NOT continue to go up in 2010. It will be discounting higher interest rates in the second half of 2010.
Believe me I am aware that there are a lot of valid arguments for up and down in 2010. All things considered 2010 will be a big down year in my opinion. I also think it will begin early. There are a lot of reasons why I say this. One is that I believe Government infused liquidity, which is all that has fueled this 50% retrace, will dry up faster than anyone really expects. If the consumer doesn't snap back and begin to go into debt again, and he shows no signs of it, deflation will continue and will become the wrench in the plans of Tim and Ben. They have failed to reinflate the economy and have only succeeded in creating an asset bubble and deflation is the only natural and eventual outcome. They have no idea how to fight it and the more they try the worse they will make it. I still see a deflationary depression in our not too distant future. Tim and Ben with the help of the rest of the government are guaranteeing its eventuality.
America's greatest days are behind it, at least for the next decade. The day that the final vote on health care reform takes place will be a date which lives in infamy. The unintended consequences will be horrendous. The only thing that man learns from history is that man learns nothing from history.
