tag:blogger.com,1999:blog-7131761677406025498.post5937821720849599498..comments2023-10-22T07:29:23.630-04:00Comments on EconBlog Review: Caution in Defense of Capital Preservation Is a Virtue As European Economic Imbalances Roil Murky Waters"DoctoRx"http://www.blogger.com/profile/07864962793726539567noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7131761677406025498.post-2477623510493867112012-05-29T12:01:19.047-04:002012-05-29T12:01:19.047-04:00If the USA goes into a recession induced by Europe...If the USA goes into a recession induced by Europe & China then I think inflation will be the accepted solution. But it might not work and in fact could psychologically backfire as individuals and businesses pull back to conserve and save even in the face of inflation. Totally perverse but that is how I read people and my small business clients today. Prices going up? Conserve even more is what I am hearing. Also, the underground economy is picking up in popularity; people just don’t know how to do it. Yet. There is little moral concern about the legality of it now. I am on the street. These are my headlines.<br /><br />Ride the stock market up if at all possible right now with indexes having bought between 5/21 to 5/25. Have a clearly defined reversal point if the market doesn’t rise. If the market does rise it is harder for me to see where to exit and take profits at this time and that is what I am working on. The 50 SMA may be my fall back place to exit without any other idea.Rigorousnoreply@blogger.comtag:blogger.com,1999:blog-7131761677406025498.post-7733280938927599392012-05-28T17:44:03.645-04:002012-05-28T17:44:03.645-04:00Yes, the media and the eurocrats have been crying ...Yes, the media and the eurocrats have been crying 'wolf' for a long time. But as with the US housing bubble, which peaked at the end of 2005, perhaps a major bust will actually occur. The wolf may finally make an appearance. Note I am not going to focus overmuch on Europe. Just thought it's worth an occasional mention again."DoctoRx"https://www.blogger.com/profile/07864962793726539567noreply@blogger.comtag:blogger.com,1999:blog-7131761677406025498.post-4437336584107844712012-05-28T16:22:50.846-04:002012-05-28T16:22:50.846-04:00To me it's more like watching "Lost"...To me it's more like watching "Lost". I can't keep up with everything and every episode introduces another mystery or another threat.JB McMunnhttps://www.blogger.com/profile/15468282698533043544noreply@blogger.com