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

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To: Horgad who wrote (82266)5/31/2007 11:11:02 AM
From: John Vosilla  Read Replies (2) of 110194
 
'Also the fact that many things are inflating now, does not in any way invalidate the deflation argument. In a way it even supports it. Joe Six Packs are getting squeezed from every direction by inflation, but they are seeing little inflation benefit (no more house inflation, extreme lagging wage inflation).

As a result Joe Six Packs are getting pushed closer and closer to insolvency everyday (deflationary). Of course the wildcard is that the gov. can print all the Joe Six Packs back into play with a flick of a switch.'

Yes all you describe appears to be unfolding. Bottom line on the past five years is if you didn't protect yourself for inflation you have fallen much farther behind. Was Mish, Fleck, Tice or any eternal doom and gloomer telling you or I that 2-3-4 years ago? It seems our esteemed leaders/Goldman mafia don't want to let the normal business cycle run it's course thinking it is win win with J6P better off in any situation as long as he still has a job and the suits continue minting money in their pocket.. I totally agree with you now that deflation, even depression is now looking more and more like a possible scenario looking 1-3 years out. But will DOW and emerging market stocks double first? Only recession and a large back up in long term rates will save us from doom?
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