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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 2:23:41 PM
From: mishedlo  Read Replies (1) of 110194
 
Inflation runs up until the ability and/or willingness of the masses to take on more credit hits its limit.

Since that by K-Cycle is a 60+ year time period by the time we get to the turning point, no one thinks anything other than inflation is possible.

But once that credit limit is reached, the game is over.
Prechter was 20+ years early on his calls because he ignored that simple fact. There was huge ability of consumers to take on more credit in the 80's and 90's. The same thing can not be said today and the negative savings rate accomplished by cash out refis on houses is the final straw.

Mish
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