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

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To: Mike Johnston who wrote (82230)5/30/2007 2:00:24 PM
From: John Vosilla  Read Replies (3) of 110194
 
Okay this is getting ridiculous. China down 6% so I expected to be up a bunch today as I only have puts and for the first time ever in my 11 years in the stock market I do not have one long.

For every mania that goes bust seems there is always something to take it's place with a sea of capital and liquidity. For very cheap techno good or imported tshirt selling dirt cheap at Wal Mart your basic needs and services go up ten times the amount of your miniscule savings from other things. For every pimp on Wall Street in the financial capital of the world telling you how wonderful this economy is I see more and more folks on Main Street not able to keep up and floating the credit cards and HELOC to no end.. For every tax cut being pumped as our savior by the far right in DC I see local taxes doubling and tripling on the little guy and small businessmen.. For every doom and gloomer laughing at the FB's and Casey Sternum's that speculated and lost their shirt in RE there are two doom and gloomers who have already lost their shirt shorting the stock market..

Enough ranting on this wonderful Bush economy where no ramifications for the reckless spending and creation of excess debt ever seems to be felt by the 'suits' at the controls. Party on in a world of continued double digit expansion of credit and monetary aggregates while the 10 year treasury still at 4.85%..

You would think China's four fold increase in the stock market since it bottomed two years ago shows how much more pricing power they hold and the deflationary forces keeping rates too low are soon to be a distant memory? But Mish says 3% 10 year treasuries are a coming? Yeah that is all we need<g> with enough additional amo to keep the bubble going to incredible heights for a couple of more years so 2009=1929. Perhaps by that point he will be right and a depression is the true end game..
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