Through my own experience I can tell you that borrowing is declining because they are not lending. I have an excellent credit score and my limits have been decreased drastically, and a couple accounts even closed unbeknownst to me! Just got denied on application for a new line of credit. Hey, I think all this is actually good! But I get very aggravated when the talking heads say that 6 months ago the markets were “priced for armageddon “. But not that we are back at pre-Lehman levels, equities are “fairly valued”. Given what I agree will be a “new normal” for a long time, I’d say markets are still very overvalued.

“Yes, the economy is getting better”??? whatever happen to “The Great Depression Ahead????

So Charles, I don’t understand. I’ve read Great Depression and subscribed for about a month now. The economy is supposed to be going in the tank now, and you say it’s getting better?

If we are supposedly out of stocks now, and/or shorting the market, please clarify.

“Slow growth and probably some degree of deflation” is qualitatively different than the almost certain deflation that Harry talked about in the book. I notice here a slow slide away from the assertions that were made in the book as market conditions have changed.
Harry made some bold claims that we as investors have taken seriously—the next year will tell us a lot about whether his predictions are valid.

Pouring RoundUp on the ‘green shoots’

I still recall the comment that the ’stimulus’..” was the functional equivalent of raising the level of the Hudson River by dipping in a bucket walking downstream 100 yards and pouring it in.”

For example, cash for clunkers has sucked the buyers out of the fall and winter. The result will be further price deflation in new cars until the rest of us who couldn’t get in on the “deal”, for what ever reason, will be offered similar pricing.