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

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To: kris b who wrote (75572)12/14/2006 3:14:26 AM
From: Mike Johnston  Read Replies (2) of 110194
 
So, it still boils down to the simple question how will the FED/Government get that money to the masses

There is plenty of money around, just not for everybody. You keep saying that the consumer is on the verge of collapse.

Some are, but not because there is too little money in the economy, but because there is too much and they are not getting their share of this excess money and are falling behind the inflation curve.

-Did you read about 10, 20, 30 up to $50 million Christmas bonuses at GS ? The fact is around 200,000 Wall street employees will get record bonuses this year.
-How about 1% rise in retail sales ( i believe the gain is due to rising prices and not real sales going up )
-how about a bubble in commercial real estate where price records are being set
-how about a bubble in buyouts
-how about stock market setting records ?
-how about foreign markets surging 50%-70% or more this year ?
-Why are billions of dollars a week being added to reserves worldwide ? Too many of them around ?
-how about record corporate profits
-why is the dollar going down ? Because there are too many of them around ?
-why are long term interest rates negative ? Is it because people are stupid or somebody is monetizing debt ?
-How did Fannie Mae got "fixed" almost overnight ?

Bottom line: There is tons of money around fanning the fires of inflation. The Fed has been giving "free" money to the masses for a while now. Which is why the dolar will eventually collapse.
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