QUESTION: I listened to a radio interview where you said the Dow could double by 2016. Is that for real?
ANSWER: Yes! There is never a single reason for anything despite the TV reduces everything to this happened because of this. There is the major trend of Public confidence that shifts to Private. We can see this is the scandal that have all started to emerge since April 22nd. Investment shifts from Public (bonds) to Private assets. They are calling this the Great Rotation.
Switzerland just passed the first Bail-In legislation. No bailouts. Accounts with more than 100,000SF will be subject to confiscation.
Now, ask yourself what are your alternatives? Anyone now keeping money in banks has a screw loose. The politicians rather than regulating bank trading, are allow the confiscation of assets when the banks blow up with their trading.
Then interest rates are held artificially low so government interest expenditures do not go nuts. This has resulted in pension funds on the brink of insolvency.
This continues. But whatever they can do to tell capital to get out of banks and bonds, they are doing rather well.
