The Epic American Credit and Bond Bubble Laboratory Message Board

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

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To: GST who wrote (74975)	12/7/2006 1:10:06 PM
From: mishedlo	Read Replies (2) of 110194

Japan went into deflation while its consumers were sitting on their wallets with their pockets absolutely stuffed with trillions in cash and no consumer debt. Deal with reality -- not fantasy. The REALITY of the situation is that Japan managed to go into deflation IN SPITE OF consumers sitting on cash. The REALITY of the situation that you refuse to see is that an overhang of debt with no way possible to pay it back in an environment of maxed out consumers and falling wages and anemic job growth (soon to be negative) is an enormous deflationary overhang. 1) From the perspective of looming bankruptccies, foreclosures, etc 2) From the perspective that those that do survive will have to pay back that debt at a time when housing and the stock market is declining and wages are stagnating at best GST that is THE REALITY and you simply have your head in the sand over it. The REALITY is the very thing you trump as why Japan is different makes matters worse from a deflationary overhang point of view. That is REALITY! Now please deal with it rather than your fantasies. Mish

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