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

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To: MulhollandDrive who wrote (9424)3/5/2004 12:26:49 PM
From: Jim Willie CB   of 110194
 
you are on the wrong track

historically low rates have permitted an enormous expansion of debt, precisely when that debt should be culled heavily, thru bankruptcies on the corp and household side

hike rates is part of it
allowance of USDollar to drop 30% more is essential

we are seeing abandonment of non-IT capital already formed

WE NEED TO REDUCE THE DEBT LEVELS, DEBT BURDENS, PAYMENTS TO SERVICE DEBT, AND RELIANCE UPON 0% LOANS FOR SUSTAINING THE ENTIRE FUCHING ECONOMY

typical: General Motors has debts of $200B and a mktcap of $27B
they are now shedding jobs
what is the solution here?
you tell me
if GM continues, it sheds in a slow bleed, increases debts to fund ongoing domestic operations
if GM gets wiped out, its pieces are picked up by Toyota or some other well-run mgmt, who lower operational costs

without a 30% lower US$, without massively lower debt service costs, without uncovered health costs, without lower corp taxes, WE CANNOT COMPETE
therefore, we need economic shitstorms to produce conditions that enable competitive stance

this will get painful in a massive crisis suddenly
or painful in a long drawn out bleeding crisis
take your pick

/ jim
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