Is it over??

I have concern about our economy. I have concern that deflation, not inflation, as is believed, will be the result of this massive fed spending.  The plan in place is to allow no large companies to fail, just bail.

And bail your troubles away. Within a few months, happy days are here again. People will be buying houses, autos, shopping in malls again. So some inflation occurs as this new money and renewal of commerce will allow the fed to repay debts with inflated dollars. Or will this cause DEFLATION ?

Hoisington-Hunt note that since the 1870-ies there have occured three extended deflations:

from 1874 to 1894 USA

from 1928 to 1941 USA

from 1988 to 2008 in Japan.

All of these deflations occured in the aftermath of an extended period of extreme overindebtedness. What to do ?

Since 1802 U.S stocks have returned  2.5 % per annum more than U.S. Treasuries.

However, in ALL three aforementioned  debt deflations, the return on Treasuries exceeded the returns on stocks.

In Elliott Wave structure -top-crash-fool's rally-lengthy decline-bottom, we've been through the bubbles at the top, through the crash of a loss of 40%, and are in the fool's rally when Whooo, it's over. We'll see.

Since 1802