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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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From: UncleBigs6/28/2006 9:54:36 PM
   of 110194
 
obviously the world's central banks went way overboard with liquidity creation and we now have unsustainable asset bubbles and an imbalanced world economy.

the question now is what level of interest rates can suspend the bubbles in place. I don't know what level that is but it is clearly much lower than today's cost of money if you look at the state of the housing sector.

when this all blows up, hopefully the blame will be placed on the bubble blowers and not the bubble poppers. I don't believe the Fed is serious about popping the bubbles and bringing the economy back to a sustainable level. Bernanke is a bubble perpetuator and has already hiked rates beyond his comfort level.

I noticed the banks rallied today. Tomorrow I'm adding Fall puts on some banks to balance out my positions.
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