That is one new prediction from me on the markets for this year. My original prediction was we would end up at 5750 or so, but with the successful acceptance of more QE in by the US Federal Reserve the markets are only headed one way.
The Hedge funds and their computer algorithms who generate 60% of the US market trades and 30% of the FTSE ones know this, the institutional investors know this too. We could see and extended Santa Rally.
In the long-term this debt is going to get monetised and the US dollar is going to get de-rated from being the World's currency within a few years, if not next year at this rate. In the meantime the mercantilist Countries like China are going to take a hot bath of rapid inflation . 2011 will be a crazier year than 2010 that is for sure.