This present crash and severe downturn will likely last into mid- to late 2012, with a minor reprieve into early to mid-2009 for stocks and a temporary economic recovery from mid- to late 2009 into as late as early to mid-2010 – from the strong stimulus and rescue plans in the U.S. and around the world. But that rebound, if it occurs, will be quickly thwarted by rising inflation, interest and mortgage rates and commodity/oil prices into late 2009 to mid-2010. Then, inflation becomes the problem and governments can’t keep stimulating the economy and will have to raise interest rates instead. That and higher oil prices bring down the economy by mid-2010 and we finally see the necessary deflation and depression to bring real estate, stock and commodity prices to much lower, more sustainable levels to foster the next boom when demographic trends turn up again from 2020/2023 into the mid 2030s and beyond.
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