Steve Forbes On The Economy

Here is Steve Forbes at Freedom Fest.

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Forbes’ Thoughts

• The US economy will show real growth in the second half because of low inventories.
• There is plenty of liquidity out there even though a lot of it is frozen.
• The rest of the world is starting to get it right.
• In terms of investments we are on the cusp of a real era of innovation.
• Right now I would take a bundle or package of financial institutions and buy them.

This is a classic: “There is plenty of liquidity out there even though a lot of it is frozen.”

My Thoughts

• The US recession picks up steam in the second half.
• The world economy is going to slow.
• Inventories are going to skyrocket along with unemployment.
• Financials are not going anywhere except for a possible dead cat bounce.

Mike “Mish” Shedlock
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