A Pleasant and Scary Chart [2009 Archive]

Today we have a couple of interesting charts. 

The first one predicts that we should be mostly completed with our Recession… since the average recession is 11 months and today is apparently 11 months into Our Recession.  A Pleasant thought that we are getting close to exiting this economic fiasco.

Of course, This next chart is quite Scary…. Increasing money supply generally, as our Finance Professors liked to tell us, bad for future inflation.  That means rising interest rates when it starts to hit.  And it will be in waves because the FED interest adjustments take 18 months to hit the economy with lots of opportunity to over-correct on the economic feedback.

So what to do with those investments now?… Need to do some more research on bond values in rising interest rate environments… hmmmm.  Equity markets certainly won”t be going up. hmmm.

Now we saw this link [Guardian] that discusses how various countries have thrown Cash at the Banks in terms of GDP:

UK = 20%
Norway = 14%
US = 7%

That is some significant spending.  As all these countries wait for ”the consumer” to rescue us, how long will that take?  Maybe dipping into the gold-bug game seems the right thing to start doing (we did a bit yesterday)?

What do you think?


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