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

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To: Ramsey Su who wrote (37301)7/30/2005 9:19:07 AM
From: russwinter  Read Replies (2) of 110194
 
This amounts to a decrease in consumer spending of about 1 1/4%" of gross domestic product>

The Ministry of Truth is amazing isn't it, wonder if this is their new confidence game, telling folks it won't hurt? Practicationers of the Joseph Goebbels Big Lie school of communication. The audience apparently?
ernestfunclub.com

She must just be doing simpleton analysis based only on equity extraction. In a house price down turn of any kind, it is easy to visual the kind of extraction of the last couple years returning to the norm, or even going to zip. $125 billion less equity extraction would be 1.25% of GDP.
idorfman.com

However, obviously the effect would be far, far greater on the collateral value behind trillions in loans, and then have further employment and solvency effects on the entire world economy. Relevant charts:

idorfman.com

ernestfunclub.com
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