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

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To: mishedlo who wrote (29962)4/4/2005 4:57:16 AM
From: LLCF  Read Replies (1) of 110194
 
<In theory they COULD.
In practice it will not happen.
Hyperinflation would bail out debtors (the mass public) at the expense of creditors (banks, financial institutions, and the wealthy).>

I disagree 180 degrees:

1.) Politically it's the best thing... mass public as you say... there is NO WAY you're going to have the masses losing their homes without the Fed doing exactly what a democratic bleeding heart president and congress want them to do. NO WAY they stand pat. IMO high {hyper type} inflation scenario is a shoe in... just a matter of when.
2.) The real power and wealth aren't stogy old bond holders any more. Those old trust funds are even diversified to some extent. Most everyone with 1/2 a brain would be OK.
3.) The REAL wipe out is going to be foreign bagholders. Who cares? Of course you'll have insurance companies and the Fannie Mae ilk. They'll just have to go... or more likely, the fed will bail out debts {with worthless dollars} but not equity.

DAK
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