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Non-Tech : Bill Wexler's Trading Cabana

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To: peter michaelson who wrote (1678)2/11/2007 1:50:47 PM
From: Bill Wexler  Read Replies (1) of 6370
 
Simple. A great deal of the money used to buy crap made in China and sold in Wal-Mart, Best Buy, Target, etc. came from loans taken out against artificially overinflated real-estate. Now that the liquidity is being drained and the real-estate bubble is collapsing, consumers will be forced to spend less and save more. Like falling dominos, the businesses that benefitted from the inflating bubble, will suffer during its deflation. Why do you think insiders have been dumping U.S. equities at an astounding rate?

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