It is an interesting analysis and I hope he is right.<p>One of the comments on his post articulate my big fear:<p>"This time IS different Phil. The western world’s economy has yet to deleverage. What was a housing / credit crisis is now a global sovereign debt crisis. Massive stimulus spending, 0% interest rates & QE 1 & 2 have simply delayed the inevitable. The staggering bills must now be paid. There are only 4 ways the US & Europe can deal with them: austerity, higher taxes, default or inflation"<p>In 2008, the thing that saved the western world's behind was China's slowdown. I must admit, that one surprised me. I assumed that local Chinese demand would replace the lost exports for China. That didn't happen and China experienced a slowdown just like the rest of the world. All in all, we rode through that one. This time, China seems to have inflation and have deemed it undesirable. How will things play out this time, I have no clue.