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Politics : Welcome to Slider's Dugout

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To: JimisJim who wrote (5342)5/21/2007 11:48:12 AM
From: RonMerks  Read Replies (2) of 50697
 
'Liquidity won't peak until the CBs around the world stop increasing money supplies 10% a year or more as they have been'JimsJims

I think we are quickly approaching a turning point to where the housing and debt bubble are going to accelerate- and to where the mood in America turns dark- from rising Gas prices and ugly 2008 political campaigns- that people will finally become afraid of debt.

FEAR will replace speculation.

The Fed will be pushing on a string with further liqudity. The consumer wont want more debt and the Private Equity deals will fizze out just like they did in the Milken & Boesky era. Its always been the sign of the final blow off top.

This mania however is starting from a 'top' that exceeds the madness of the 80's and 90's and even 1929.

I'll repeat my earlier prediction. There will be another major terrorist attack on US soil before the 2008 Presidential election. For 2 reasons:

1. Because the terrorist will get more 'bang for the buck' than ever before- as the US economy is at its most precarious level in decades.

2. It will be the only way the NeoCons can hold onto power.

I pray it will not happen- but, I am sure it will for either of the 2 above reasons- both which I think are reality. And I think we will see a massive global recession. China repeating Japans fall and the US - hitting 'great depression' levels in the old industrial states and deep recession levels in the more service/tech oriented economies of the Sout, East and Western states.

A brutal lesson about Debt and speculative excess.

Sadly, the puppetters will have a massive amount of cash in which to step in and buy global assets at once in a lifetime lows. This is the only way Wall St can get its hooks into controlling Euroland and China.

Crash them first.

Ron
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