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

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To: Crimson Ghost who wrote (70102)9/22/2006 1:57:04 PM
From: jimmg  Read Replies (3) of 110194
 
70%+ of Americans have no ability to hedge expected price hikes. They are in debt and living paycheck to paycheck.

Their jobs are on shaky ground because manufacturing has been outsourced to Asia and low paying service jobs taken by illegal Mexican immigrants.

The only thing holding up the economy over the past 5 years has been housing and that is now finished.

Given this backdrop, I see no chance of accelerating inflation from here. Jobs will become more scarce, discretionary spending power will collapse and the savings rate will rise.

Long term treasuries are speaking right now. Is anyone listening?
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