A. I hope 2011 will at least not bring bad news to those who haven’t bought. I felt hoping for good news is really asking too much at the moment.
B. Although I hate cash as well, I think as an asset class, it is hated so much now that the a contrarian investor should love it at the moment. That’s why Seth Klarman has a stockpile of cash at the moment.
C. The Chinese inflation analogy is mis-applied. If every government wants to help 10% of the people to screw 90% of the remaining population. Keep in mind that in China, 90% of the people save, therefore inflation screw 90% of the people. Whereas here in US, inflation would help the majority of the people who are deep in debt. Only deflation will screw 90% of the US population.
