Big fan of John Mauldin, and his ever-pessimistic, but somehow hopeful weekly email newsletter. Have followed him since the pre credit-crunch days, and his prescience and foresight have proven correct time and time again.
His newsletter can be found here http://www.2000wave.com and is a must for every discerning investor. It's a pleasure to receive in my inbox every week. It inevitably dispels any hope that has gathered in my synapses over a week of mainstream press brainwashing, and cuts to the chase with cool statistical analysis of the prevalent economic impasse facing America and much of the world.
Let's review quickly what I have written about the last four weeks. We have enormous excess capacity - capacity utilization is about 68%. Banks are cutting back on their loans, and consumers and businesses are borrowing less. Housing is likely to be in a funk for at least two years. We are deleveraging, which is causing the velocity of money to slow.
All of this is very deflationary. Will the Fed print enough money to reflate the economy? You better hope so. Will we have to deal with it later? Of course. We have no good choices. We are in for a long five years, at the least. Yes, there will be opportunities, and new industries will be created. But it won't happen overnight.
Welcome to the New Normal.
Please use this thread as a place to comment on his weekly email newsletter. I found this weeks particularly good reading, and it can be found here...
