I believe the only reason we had a ‘recovery’ over the last 28-24 months is due to massive government spending/stimulus funded by an amazing increase in our national debt.
Now that the out of control debt is in the forefront of the debate and the rating agencies are pressuring us to fix our books and balance the budget to start paying down debt, investors are realizing that the funny money is no longer going to fill the hole.
I think the second half is going to be ugly, along with 2012.
I’m all cash right now and feel comfortable that there won’t be rampant inflation anytime soon. We’ve still got lots of problems to work out.
