“In case you missed it - Bloomberg Radio Tom Keene interview with Gary Shilling today - starts at about 6mins. Topic 'deflation'. Quote "Central banks simply not able to rekindle the economy". GS seems to believe deleveraging is unstoppable, still ongoing and a large correction to US markets in store. I'd be most interested to hear your views.”

David Fuller's view

Thanks, I was able to listen to this after recording my Big Picture Friday Audio, and I certainly have time for Gary Shillings’ views, as he is a very experienced commentator of a similar age to myself.  I would have preferred to hear him speaking freely off the cuff, as Eoin and I do in our Audios.  Interviews inevitably have so many interruptions that one seldom gets more than short sound bites, even with an experienced and often entertaining journalist such as Tom Keene, who also has a lot to say.

From the sound bites, I thought his views were not that dissimilar to my own, starting with it taking 6 to 10 years for economies to recover from a widespread credit crisis recession.  I am not sure of his view on the Fed but I maintain that it has done a responsible job, evidenced by the fact that the US avoided the depression seen in parts of the EU.  I do not recall hearing the word “unstoppable” but deleveraging in the US is a lengthy and eventually healthy reset, in my opinion.  Another correction is underway but I maintain there are more medium to longer-term bull than bear points.  I hope you will listen to today’s Audio, if you have the time, because I can detail my views much more quickly than I could ever write them here.