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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: mishedlo who wrote (5930)1/23/2004 1:52:22 PM
From: Jim Willie CB   of 110194
 
low bank lending is the key behind falling M3
combined with movement of funds into stocks, powerful force
the real economy is going to shit
distorted more with each passing quarter

the smart gang is corporate CFO's
they have sold tons of debt to mindless bond investors
they have rolled over past debt, to lower yields
they have reduced their borrowing costs on the books
they have been reluctant to add to new borrowing
they have expanded into Asia with new capital equipment bought on credit
THAT IS SOUND FISCAL MANAGEMENT

the dumb gang is investors and households
but citizens are caught between a rock & hard place
they must cut back their standard of living by 20-30%,
or else pay up with extended credit
so far in the last few years, their decision is clear
MORE DEBT

/ jim

p.s. I just love the 7-8% growth in GDP cited everywhere
it was about 2 to 2.5% at most
is was twisted with hedonics, then annualized (mult x4)
I said in my January2003 Predictions article that the public and investment community would gradually come to doubt any and all govt official statistics
we are moving in that direction
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