The pundits are wildly atwitter following Friday's record high in the Dow. Keep in mind that the blue chip average is still well below the 13045 target broached here a while back. If that number, a Hidden Pivot, is reached, it would imply a rally of about nine percent from these levels. By then, talking heads like Larry Kudlow will not be merely atwitter, they will be incontinent with excitement. Now, I'd be the first to admit that a thrust to 13000 would be quite a feat, especially considering there's a millennial real estate bust under way that could drag consumer spending down to levels that would make the 1930s seem like a romp at Bergdorf's. But to borrow a line from belly-dancing rocker Shakira, charts don't lie, and they've been pointing higher for some time. So what, if the notion of a 1000-point DJIA rally stands logic on its head? Hyperinflation's Losers I wonder if even Kudlow sees the Dow going that high? It's not often that my forecasts skew north of whatever guesstimates CNBC's shills are touting. Perhaps I should raise my estimate to DJIA 50000 to get some mileage out of it? It could happen, too, if there were a hyperinflationary phase before the inevitable deflationary bust forces borrowers and lenders to come to terms without killing each other. But hyperinflating debtors' problems into oblivion seems most unlikely, since it would devastate lenders. That's why they changed the bankruptcy laws ' so that if and when the rentiers are left holding the bag, there will at least be something in it. Like what? Answer: Joe Sixpack's legally binding promise to repay at least 90 cents on the dollar, even if it takes three generations of Sixpacks, working 40 hours a week for a total of 120 man-years, to retire great-granddad's last dime of debt. GOP Defenestration There could be
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