Comments on: TDI Podcast 122: Mish – How Long Can This Rally Last?

By: Frank Whitman

Frank Whitman — Fri, 25 Jun 2010 12:14:35 +0000

I read that Mish thinks that right now is the right time to start investing, the markets are growing, and with high probability I they won't fell in the next 2 years.

By: Agnes

Agnes — Wed, 16 Jun 2010 16:39:53 +0000

Thank you for giving us the possibility to listen to Mish's thoughts. I think he says wise things. I like to listen to him very much.
P.S. Deflation is not so good, as it implies no economic growth. INFLATION is the cost of economic growth.
Real price includes inflation. So, real price is more representative.

By: Love Poems & Quotes

Love Poems & Quotes — Sun, 31 Jan 2010 21:46:19 +0000

Austrian economics has to be what he's talking about!

By: Lookout Ranch

Lookout Ranch — Wed, 06 Jan 2010 22:28:41 +0000

Bingo.

It's a case of the cure being worse than the disease. I'm sure there's some moral satisfaction in watching the world economy crash and burn as a result of its excesses and mistakes, but I'd just soon tell the doctor "no thanks" if that's the cure.

By: Adam

Adam — Tue, 01 Dec 2009 00:24:20 +0000

Alex are you talking about austrian economics?

By: Alex

Alex — Sun, 13 Sep 2009 11:54:15 +0000

There is a new type of ecomics being formed at the moment…….. something that will make history. There is no set of charts, stats algorythms that be compared to whats happening now. The last Great Depression, cannot be used to explain or avert a systematic collapse of epic proportions. We are going through a point in time that will be studied by all future generations.

By: Chris

Chris — Wed, 26 Aug 2009 14:47:42 +0000

"Would you rather have more purchasing power with every currency unit you have, or less purchasing power with more currency units?"

It depends, if I have a lot of money then I want more purchasing power. If i don't have any money then I don't.

By: Alex

Alex — Tue, 25 Aug 2009 21:17:17 +0000

If nominal deflation is good, why wasn't Japan's situation in the '90s good? Why wasn't the Great Depression good? The reason is, because spending (i.e. the "multiplier") just stopped cold. The expectation of deflation feeds into spending less, because why buy something now when it'll cost less later? People will just hoard currency and hard assets until the expectation of deflation subsides; which of course leads to more deflation. That's what's called a deflationary spiral.

As less people spend, output decreases. As output decreases, fewer jobs are required. As there are fewer jobs, there's more pain and suffering.

For what it's worth, Austrian economics has its own huge boom and bust cycles, it's just that we've either forgotten about them or most of the economy was so concentrated in the hands of the few that most of the population couldn't really tell the difference.

By: Nom. Deflation=Good

Nom. Deflation=Good — Sat, 22 Aug 2009 15:58:54 +0000

To Coninue:
That is exactly why NOMINAL PRICE DEFLATION IS GOOD. If nominal prices are allowed to deflate to "REAL PRICES/WAGES" the economy would finally reflect "reality", i.e. peoples and businesses purchasing power. People could then start to afford to purchase things. To conclude, it shouldn't matter how many dollars a person has, only the purchasing power of those dollars.

By: Nom. Deflation=Good

Nom. Deflation=Good — Sat, 22 Aug 2009 15:57:44 +0000

I will concede Mish is not the greatest explainer in person. Andrew hasn't quite grasped the concept of "real" vs. "nominal". Let's say my salary is $100,000 last year (all things held equal – except federal reserve) doesn't mean I am able to purchase $100,000 worth of goods or services. If we had 3% price inflation, say since last year, I can "really" only purchase $97,087.38 today with that $100,000 that I made a year ago. Suffice it to say, when talking prices people generally speak about the nominal number not the real number. Mish and classical austrian economists talk about the "real number" which gives those who use it, by far, a more accurate analysis of the economy. When it comes right down to it, purchasing power is all that matters. What does it matter if I make $100,000 (all things held equal) if I can really only purchase $51,282.05 worth of goods or services since the inception of the federal reserve?

By: Deflation=Good

Deflation=Good — Sat, 22 Aug 2009 14:55:28 +0000

Alex and Dan need to reject keynesian (bubble) economics and embrace classical (austrian) economics, which is REAL economics. Both Henry Hazlitt (author of "Economics in One Lesson") and Von Hayek (Nobel Prize Winner and author of "Road to Serfdom") were classical (austrian) economists. You guys should read the book: "The Politically Incorrect Guide to: The Great Depression and The New Deal" by Robert Murphy. Ask yourself one question: "Would you rather have more purchasing power with every currency unit you have, or less purchasing power with more currency units?"

By: Foreign Treasuries Holders - Is China Selling? | The Disciplined Investor

Foreign Treasuries Holders - Is China Selling? | The Disciplined Investor — Tue, 18 Aug 2009 16:16:03 +0000

[...] report out yesterday on the foreign holders of U.S. Treasury securities. In the last TDI PODCAST, Mish and I spoke about the reasons why China needs to continue purchasing U.S. assets. In other [...]

By: Alex

Alex — Tue, 18 Aug 2009 05:57:36 +0000

Mish is basically advocating for a Great Depression 2.0 (spiralling deflation and unemployment, until we reach equilibrium way, way below where we are now), and that nothing should be done to try to ease the pain. I appreciate his insights but it's very hard for me to agree with his opinions.

By: NewsFlashr Editor’s Picks for August 17 | Penny Stock Trading System Blog

NewsFlashr Editor’s Picks for August 17 | Penny Stock Trading System Blog — Mon, 17 Aug 2009 22:40:44 +0000

[...] 4. Andrew Horowitz of the Disciplined Investor interviews Mish of Mish’s Global Economic Trend Analysis with questions and commentary on “How Long will this Rally Last?” [...]

By: NewsFlashr Editor’s Picks for August 17 | Afraid to Trade.com Blog

NewsFlashr Editor’s Picks for August 17 | Afraid to Trade.com Blog — Mon, 17 Aug 2009 16:21:45 +0000

[...] 4. Andrew Horowitz of the Disciplined Investor interviews Mish of Mish’s Global Economic Trend Analysis with questions and commentary on “How Long will this Rally Last?” [...]

By: Dan

Dan — Mon, 17 Aug 2009 15:54:49 +0000

At supermarket self-checkout lanes, you can't scan one package of meat and put two in the bag. The bag is on a scale and rejects that kind of trick. Supermarkets aren't stupid.

I like Mish, but I keep in mind his heavy Libertarian viewpoint.

By: Michael Riegger

Michael Riegger — Mon, 17 Aug 2009 05:27:51 +0000

Thanks for bringing Mish on, love hearing his thoughts.