Guest Post: A Tale of Two Charts: Are We 2007 America Or 2006 Zimbabwe? | Zero Hedge:"Then the market proceeded to run up to 4,000,000.
What happened?
The country ran its printing press flat-out and inflated away its currency, so the price of pretty much every tangible asset, when measured in Zimbabwean dollars, went parabolic.
Since equities represent part ownership of companies, and most non-financial companies own tangible assets, their value went up as well.
Not enough to increase in real terms (versus gold, for instance) but enough to make shorting that market a really bad idea.
So are we 2007 America or 2006 Zimbabwe?
A lot is riding on the answer."
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