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

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To: pater tenebrarum who wrote (14654)8/29/2000 8:06:21 PM
From: patron_anejo_por_favor  Read Replies (1) of 436258
 
Heinz, Doug Noland agrees with you. Did you catch his take on "Diminishing reliquefications" in PruBear last Friday?

prudentbear.com

The main point was that with every successive reinflation of credit, there is a smaller and smaller return with respect to normalization of credit spreads and reduction of systemic stressors, while at the same time having a larger and larger effect on inflation and the stock/real estate bubbles. Sooner or later (sooner, IMO), the credit system either crashes when the stress can't be reduced at all, or else its precipitated when tightening is demanded to reverse inflation. It will be spectacular.
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