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

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To: mishedlo who wrote (75777)12/16/2006 12:21:46 AM
From: kris b  Read Replies (2) of 110194
 
Fourth-quarter sales will probably decline 8 percent because of a slowing U.S. housing market and falling demand for goods such as power saws. Stanley Works, the biggest U.S. toolmaker, cut its sales forecast October 24.

Very interesting analysis of Q3 Flow of Funds by your friend Paul Kasriel. It proves the very point that THEY can create the credit but it takes willing borrowers and lenders to put it to work. Scary looking charts in his presentation. Charts of the retail stocks over the last few weeks are week. Today's tape wasn't any stronger either. I guess Christmas sales are not going according to Bernanke's script despite massive pumping since last July. Liquidity isn't going to where Bernanke wants (households) it to go, but flows where it wants to (Pig Men)

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