Debt Deflation Bear Market: First Bounce

``Stock market participants are trained by previous recessions since WWII to expect a recovery after consumption expenditures turn around in response to fiscal and monetary stimulus. They are not wired to comprehend the wholly different dynamics of a debt deflation as we identified it in Dec. 27, 2009 and forecast a 40% decline in the DJIA in line with the first year decline that the Japanese stock market experienced in the first year of Japan’s debt deflation.''