Booster:

We, meaning the world, are still in the throes of the inflation versus the deflation debate. So far, deflation seems to be dominant. Deflation, if allowed to prevail ( it is possible that the cumulative excesses of the past) will prevent the recovery of the world economy). Such would of course be disastrous for all long positions regardless of asset class. Such would result in a lessening of demand for all economic activity. Fewer people employed means reduuced consumption of everything. Even oil!

Conversely, if reflation efforts presently being attempted, are victorious, then all assets will appreciate in value. At least in nominal terms, if not inflation adjusted terms.

Take your pick as to the outcome. Salient question. Do we actually need to get the excesses of our past behaviors out of the way so that we may rebuild from a better platform?

Brian