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

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To: russwinter who wrote (66137)7/14/2006 5:11:16 PM
From: yard_man  Read Replies (1) of 110194
 
>>Once public opinion is convinced that the increase in the quantity of money will continue and never come to an end, and that consequently the prices of all commodities will not cease to rise, everybody becomes eager to buy as much as possible and restrict his cash holdings to minimum size… If the credit expansion is not stopped in time, the boom turns to crack-up boom: the flight into real values begins, and the whole monetary system founders<<

this has already happened in spades in the "real" economy.
I've got a buddy who works at a little outfit that builds electric equip enclosures -- he's never seen them buy so much raw material ahead because the prices won't stop going up. I'm telling you -- when the recession hits, it's going to be one mother ...
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