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

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To: jimmg who wrote (76441)12/22/2006 2:19:08 PM
From: kris b  Read Replies (1) of 110194
 
"There are millions of people gambling in the stock market. "

FED should shrink money supply rather then expand it like crazy (M3 +10% annually). This would force the other players to contract the credit creation as well. This would in turn deprive the gamblers of the chips to play with. Their games have nothing to do with the real economy.

"Americans are borrowing and spending in massive quantities. This is what is driving the stock market. When this stops, the stock market will drop."

Ditto.

70% of the S&P 500 profits come from financial engineering/paper shuffling rather then economic activity/production. Contract the credit by 10-20% per year then you will see how sustainable this scam is.
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