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

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To: Kaena™ who wrote (29438)3/28/2005 11:32:19 AM
From: Rarebird  Read Replies (1) of 110194
 
<<As interest rates rise, CREDIT EXPANSION induced housing/consumer bubbles collapse, fed, state, county and corporate bond debt, GSE mortgage backed secuities debt, and all other leveraged malinvested dollar speculations collapse, Japan-Asia/Europe/Middle East would need their money back at home converting vast dollar holdings back into domestic currencies/commodities/resources.>

It's interesting to speculate how (and when) the break point will come:

Will it come when a large enough part of the rest of the world realizes that the US has no intention whatsoever to stop or even slow down its accelerating credit expansion?

Will it come when Americans themselves lose confidence in their stock and/or bond markets and start to sell, causing foreigners to panic sell?

Will it come when millions of people who have been borrowing up a storm for years finally take a look around and stand astounded by what they owe and the weekly cost of being so deeply indebted? They often turn, en masse and on a dime, when that happens, the consumer finally does stop borrowing.
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