Scott Minerd of Guggenheim Partners is on right now talking about a return to deflation fears by 2009 or 2010, lower rates from the Fed, and and the possibility of gold doing well in deflation as people lose trust in the financial system. He even had the guts to call for an “L-shaped recession” with no recovery on the horizon as far as he can see. Also mentioned was further dollar strength as rates come down across the pond.

For the other perspective, we had mention of new analysis from former Bear Stearns economist David “always wrong” Malpass, who expects higher Fed rates and new highs for gold in the coming weeks.

Elliott Wave theory teaches that during the strongest phase of an advance or decline, mainstream opinion increasingly matches objective reality, so being contrarian is actually wrong. Watch for more mentions of deflation and acceptance of the bear market as this bounce rolls over.