I know that the bull market in bonds is coming to an end. What I expect to happen ... is things are going to get difficult in the markets, the market is going to go down – whatever the number is – you pick the number, 13 percent, 17 percent…and the Central Bank is going to panic, and as you know, they’re just bureaucrats and academics – they’re not very smart people.
So they will panic, and they’ll lower interest rates or print more money…whatever they do, they’re going to try to come to the rescue of the bond markets, and bonds will rally, but that will probably be the last time, and stocks will rally, but that will probably be the last time, and then ... then the bear market in bonds resumes, and after a 35, 36 year hibernation, we’re all going to pay a horrible, horrible price. And the next time around, this is going to be much worse then 2008, because the debt is so, so so much higher.
You remember when Lehman Brothers disappeared ? Well Lehman Brothers has been around since the 1850’s. Bear Stearns had been around since the 1920’s.