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

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To: John Vosilla who wrote (66396)7/19/2006 1:31:44 PM
From: shades  Read Replies (2) of 110194
 
Yes, I believe they will try to help consumers, not by dropping money out of helicopters but by lowering interest rates.

Japan has been doing some interesting things with money supply versus interest rates and they have more currency out there than the USA eh? Why do you feel the way you do Vosilla?

However unless jobs are created, with salaries that will allow consumer debts to be paid off, the Fed loses.

The dollar has to fall for any macro change in the outflow of jobs eh? Also the border has to be sealed up as well no? Even if the dollar falls - the regulatory environment, labor unions/workers rights would keep companies going overseas no?

Plumbers should do well eh? We don't yet have those shipping container houses that can easily be shipped overseas to be fixed yet - hehe.

Asset bubbles in the stock market and then in housing kept the consumer ready and willing to spend. What's next?

Chromatic stressed several times that housing was the last bubble to blow. He is spending all his time building fiber networks in washington - fiber to the curb is still not here for 100% of americans eh?

If housing is the bubble of last resort, what would happen if the Fed turned on the pumps?

Personally Vosilla - if DB Coopers money bag with 2 million fell on your head tomorrow where would you put the money? I would first like to store my gas in bulk quantities.
I remember a link of somewhere here on SI they were doing that - but I don't remember it being near me in clearwater.

Without that I would like some uranium so I can build a mr. fusion and power my home out in the boonies.

Today I am going to buy a 2gb sandisk mini sd card for my pdaphone but I want a 10gb one. I went to bestbuy today - the general public I see are not going to throw extra money into GOLD - they will pump it into more new clothes, cars, electronics, food. They are socialized to do this - I think several here do not appreciate how hard it is going to be for princess and her boyfriend to alter their socialization - very difficult - now perhaps muslims and asians the world over will jump into gold - but I just don't see the bulk of americans doing that no matter how charming general chen is.

I suspect money would go into gold and silver,

Why? When has oprah come on TV and said buy GOLD my little sheep or else? I haven't heard her say that. When I see oprah get married, give up her makeup and new clothes and instead of giving away cars on her show give away gold bars I will agree with you that times are a changing. Right now I see a single princess living the life of indulgence.

but no jobs would be produced, certainly nothing like the housing boom produced'

Perhaps all those housing workers will become mine workers? You did see the video of the guy who dug a 40 foot hole in his yard when his metal detector went off eh? hehe

Why does the end game has to be deflation or hyperinflation?

Mauldin said it didn't - just muddle through.

I guess they both sound so much sexier and generate much more interest than stagflation and a persistent squeeze on working Americans.

Bingo - the media is so sensationlized today - who wants boring slow stagflation - Mosler says we are officially in stagflation from the data he sees. His spends a lot of his time driving and modifying high end sports cars. Guess you can never have too many 200+ mph vehicles - hehe.

Watched grant today on bloomberg tv - said Bernanke is such a wall street pushover - phil grande said the same thing last night and told everyone to take off thier shorts - hehe.
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