Thursday, June 25th, 2009
Ever since the Economic Crisis began, there has been one facet that has been very under-recognized – that many long-held assumptions have proven incorrect.
There are many of these assumptions, but I will list a few. The “fallout” from these assumptions proving incorrect has been widespread and very damaging:
- Real estate (particularly residential) always goes up.
- Las Vegas / gambling is immune to recessions.
- A Fed Funds rate near zero would, in effect, “supercharge” the economy; i.e. lowering the rate would cause the economy to “boom”
- Gold would “rocket”, or at least perform very strongly during a financial crisis
- “Gentleman’s Clubs” are recession-proof (see link)http://online.wsj.com/article/SB124467942901904435.html
SPX at 907.66 as this post is written
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