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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Spekulatius who wrote (2459)7/6/2000 10:26:24 PM
From: pater tenebrarum  Read Replies (1) of 436258
 
no i don't see anything substantial happening either...and i don't think the CB's will actually do anything at all to stop the bubble. they don't dare doing so anymore...they're trying at the same time to keep it in check and keep it from imploding. but that is impossible in the long run, as specifically the credit bubble depends on ever larger injections of fresh debt into the system. the growth of debt is 5,3 times greater than GDP growth already - thus, at some point, a natural limit to debt expansion will be reached, regardless of the CBs actions. that's the point at which both the credit and asset bubbles will suddenly unwind. similar to the BoJ, the CBs will be completely powerless to do anything about it at that point. they have allowed this bubble to get too big - the point of no return has already been passed imo.
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