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

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To: Tommaso who wrote (78006)1/22/2007 9:12:02 PM
From: bart13  Read Replies (2) of 110194
 

But as soon as values of assets start dropping, the basis for lending contracts.


Indeed, which is why I'm watching the weekly credit data so closely, and similarly with the various hot money items like repos. Gold does tend to give advance warning too but I'm not as certain that it will as I used to be - too much fiddling.


But this contraction need not affect commodity prices.


Other than a probable initial hit and excluding non essentials, I tend to agree. I do expect something equivalent to price controls on many of the essentials after a few months too.
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