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

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To: jimmg who wrote (76572)12/25/2006 11:51:00 AM
From: russwinter  Read Replies (3) of 110194
 
Amazing, you (and the market) seem to be willing to dismiss one warning sign after another. This source develops consumer liquidity a bit beyond "just" demand deposits.
prudentbear.com

Piscataqua's conclusion:

The pace at which debt service and consumption depletes money supply has accelerated in 2006 to about $30 billion per month. In order to immediately improve this measure from ($30) billion to $0, households would need to cut nominal spending by nearly 4%.

Interest rates have little to do with it, as rates are now at 2001 levels, a time when consumer liquidity was much healthier.
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