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Subject:  Re: Portfolio Strategy in a Global Down Draft Date:  9/15/2008  12:01 PM
Author:  flyerboys Number:  252010 of 537043


They may be forced to sell good assets to cover bad.


This is the essence of the deflation case, and also the reason the markets have seemed crazy, and will seem crazier. Really good stuff will go on sale as investors and especially institutions are FORCED (shrieking in agony) to cough up good assets to pay bad debts.

The unknown is the interplay between this aspect of deflation and Helicopter Ben's flight plans, providing one half of the inflation case (other half being already massive U.S. indebtedness).

david fb
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