VOLTAIRE'S PORCH-MODERATED Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jim Willie CB who wrote (50597)	4/26/2002 3:41:37 PM
From: stockman_scott	Read Replies (1) of 65232

jw: Are you on the editorial board at gold-eagle.com..<G>...? '2004: THE NEXT GREAT DEPRESSION' gold-eagle.com ********************************************************** Here's a section that caught my attention... re: the debt-orgy that created the paper asset bubble: ["All asset bubbles lead to debt-trap dynamics and DEFLATION Assets wealth is destroyed and all that is left is a gigantic amount of liabilities. The next ten to twenty years will be spent paying back all this debt. As was the case in Japan, when asset prices fall consumption is curtailed as borrowing proves non-existent. Despite any attempt by the central bank to push interest rates lower, the consumer won't borrow and won't spend. As a result, prices fall as demand falls. A viscous cycle begins: the consumer curtails spending to pay down debt and this leads to lower demand for corporate goods and services. Corporations see lower cash flows and default on their existing debt payments, which leads to further job layoffs and a further retrenchment by the consumer. No matter how much the Federal Reserve tries to kick-start the economy it doesn't work. The Fed can create money but can't create demand for it. As was the case in Japan, an asset bubble gone bust creates"]

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next