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

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To: John Vosilla who wrote (50576)1/21/2006 12:23:09 AM
From: mishedlo  Read Replies (1) of 110194
 
Easy credit, excess risk taking and speculation.

Slowly but surely I finally got it out of you.

The root cause is "Easy credit", more specifically an EXPANSION of credit at ever lowering credit standards and ever increasing risk factors.

In short, "monetary expansion".

Remember your first comment "asset inflation" is the US$ bubble

After two questions I finally drag out of you that Money Supply ie. "easy credit" is the root cause.

Well if you agree with that then we are finally in agreement.
Remember the definition of inflation?
price increases related to expansion of money and credit?

The next question is what happens when credit tightens, or more to the point, credit is destroyed in bankruptcies?

Maybe I can drag you kicking and screaming all the way if I just keep asking one question at a time. gggg

Mish
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