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Monday, January 4, 2010

PSW: Conversation with John Rubino

Ilene from Phil's Stock World did an interview with John Rubino. John is another favorite author / analyst of mine. He runs two websites that are very different. The first is GreenStockInvesting.com and the second is DollarCollapse.com. I would recommend that everybody check both out.

The interview is also very good, please check it out!

Conversation with John Rubino 

Ilene: So what do you think of Ben Bernanke winning the Time’s person of the year award?

John: First, this was obviously a lame year – not much competition. Second, it’s a great negative indicator, like Time’s “Home Sweet Home” edition just prior to the housing collapse. Ben Bernanke is part of the old monetary order, in which it was acceptable to create paper money in infinite amounts to finance a growing government. The peak of his popularity coincides with the end of the system he helped design.

Ilene: Do you think Bernanke will get reappointed?

John: Oh yes, he fits the times perfectly. Most of the people in charge think he did a great job. He’ll be reappointed and he and Alan Greenspan will be identified with the future crisis, they’ll be the guys who are in the history books as the Fed Chairmen who ran us off a cliff. And it couldn’t happen to two nicer guys as far as I’m concerned.

Ilene: What are your thoughts regarding our economy in 2010, and the stock market?

John: In the short run, anything can happen. It’s unknowable since there are so many competing forces. The government pumping liquidity into the system can produce some nice corporate earnings reports, which pumps up the stock market in the short run. Or we could have Greece or some other bankrupt country default and send global markets into a tailspin. There’s no real way to know. Both are reasonably likely, so you could see a decent or a horrendous market.

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