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

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To: jimmg who wrote (76468)12/22/2006 4:12:15 PM
From: Mike Johnston  Read Replies (1) of 110194
 
Yes, we might say that solvent debtors are being helped out, but, the insolvent debtor is on the ropes unless he can somehow benefit from inflation in the value of the collateral as has been going on for years with real estate.

I am in fact of belief that the Fed will/is cranking up money supply to at least halt the decline in the value of real estate collateral, but it is unknown if they are successful.

Even if they are, it will be a temporary success as such actions will result in hyperinflation, so the adjustment would come through collapse and subsequent replacement of the dollar.
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