When it comes to economic health too, nothing beats a depression.

If it is a real bull market, then it’s a funny looking bull – one that’s missing parts.

House prices seem to be stabilizing. In some areas, they are going up. Of course, in some places you can get a house at half the price it sold for two years ago.

On one side, are the forces of a natural market correction following a long, long period of expansion. The easier money gets, the more people tend to misspend and mis-invest it. Then, inevitably, their mistakes must be corrected.

What is it that actually causes a depression? A stock market collapse? Or too much debt?

On the one hand, depression will probably not push up gold prices – at least, not at the beginning. On the other hand, it won’t push up stock prices either.

Will the feds succeed in causing inflation? Or will they fail? Will the dollar continue to go down? Or will it prove to be a safe haven currency in a time of deflationary trouble?

The trouble with being a contrarian is that you can never be quite contrarian enough.

US consumers are cutting back, and where they are not cutting back, they are scaling down.

Consumers aren’t borrowing anymore.  Consumer credit is going the other way, shrinking rather than growing.