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

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To: Crimson Ghost who wrote (10079)	3/13/2004 3:27:49 PM
From: Steve Lokness	Read Replies (3) of 110194

From the conservative to the speculative! We see this everywhere! If GM earnings are mostly from their financial efforts, what does that say? It isn't the making of an auto, but how you can trick the consumer into "buying" the financial instrument to buy that auto! The more crap you can lather on the auto, the higher their margins. Zero percent interest? Bull!!! Zero percent interest rates mean you are just paying the interest up front in the form of a higher price. So, GM gets to book today (in the form of a higher priced auto) their profits for the term of the financial instrument. On a personal note; last night at dinner a friend was telling of his new 40 thousand plus truck that he had just ordered. This then got us into talking about the high rate of debt burden - both at the federal level and at the consumer level. His response was that it was not to worry as that is what inflation is for. Are those of us who are financially conservative just getting it wrong? Are all those people "speculating" with their homes and loans going to get a free ride as inflation roars? The government too? steve

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