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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: mishedlo who wrote (30412)4/12/2005 5:42:14 PM
From: LLCF   of 110194
 
<1) Once asset prices start falling who will want to borrow?>

The government? And all sorts of folks who won't qualify anymore! :))

<2) Once asset prices start falling who will want to lend?>

The Fed?

<2) Once asset prices start falling who will want to lend?
3) How much money will be destroyed in upcoming housing bust>

None... I expect printing to increase, not decrease. Credit outstanding will fall substantially however as loans get put in the default category. That's probably what you mean by deflation via contraction. I guess it all depends how quickly the fed acts to buy skyscrapers and defaulted bonds.

DAK
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