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

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To: russwinter who wrote (63078)6/8/2006 4:30:49 PM
From: gregor_us  Read Replies (1) of 110194
 
It's Going to Be Very Hard Psychologically for the Japanese

at this particular juncture, to do anything that upsets the recovery in the Nikkei. They are still very close timewise to their wilderness period, and have been experiencing something new after 15 years. Restoration stories are powerful, psychologically. People will act to protect the Restoration.

That also describes my view of the current US situation, though the time frame is shorter, and the American sense of what constitutes "suffering" is of course much more easily, more quickly put in play.

I think the reason we saw that White House release at 3:30pm today poo pooing Inflation as a problem is because the equity markets have become part of the pension system, and they are prisoners to the equity markets. The Greenspan tenure proves to me that policy makers are prisoners of the equity market. Not the other way around.

Moral Hazard? Bad state of affairs? Advanced stage decadence? You bet!
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