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: russwinter who wrote (75879)	12/17/2006 3:12:18 PM
From: jimmg	Read Replies (2) of 110194

<It's called Flucht in die Sachwerte (flight into real goods).> We've already had "flight into real goods". Home prices, gold, stocks...anything practically has more than doubled in the last few years. At the end of this trend, asset prices rise because asset prices are rising. Even you are tempted to throw in the towel and chase assets at this late stage of the credit bubble. A flight into real goods doesn't increase wages for the masses. If you sell your T bills and buy real estate, that won't increase the wages for a middle class family. I understand that it's frustrating to play it safe and wait for rationality to hit the asset and credit markets. The longer the insanity goes on, the more it appears to be permanent. That's why bull markets don't end until the last bear caves in. I share your feelings. The 5 coupon passes after a massive ramp higher in stock prices and speculation are demoralizing for a bear. Until oil and commodity prices begin to rise problematically again, I think the Fed feels they have a free ticket to pump money.

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