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

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To: mishedlo who wrote (71401)10/8/2006 5:54:43 PM
From: TimbaBear  Read Replies (1) of 110194
 
I keep asking what bigger bubble can the fed blow that would create rising employment and rising jobs and rising wages? I have no answer do you? If there are no answers to that question then how does the Fed pumping money cure a consumer debt hangover? The answer is that it doesn't!

Why is that the answer? Did you see the housing bubble on the horizon when the dot.com bubble burst? I'll assume you'll answer honestly and indicate you really weren't even looking at economic issues very much back then but were still heavy into your engineering career. That aside, just because you don't have the vision to predict the next bubble does not mean there won't be one.

As far as the Fed pumping money, it will always work in a society that spends more than it makes, and the US is such a society. We will not have deflation here until inflation is (re)proven not to work. What we will do instead is keep tweaking how it is measured so we can have higher inflation without reporting it as such.

Timba
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