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

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To: saveslivesbyday who wrote (86364)9/15/2007 9:43:24 AM
From: Mike Johnston  Read Replies (1) of 110194
 
The “global liquidity glut” has fomented myriad Bubbles - and the reality that seemingly all of the global ones remain very much in force empowers Chairman Bernanke to stick steadfastly to his “savings glut” theorizing.]

“Yet "saving” doesn’t fuel Bubbles – excessive borrowings do.


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This one, short sentence ( in bold) beautifully debunks the myth of a "savings glut" as a result of a lazy analysis at best, for consumption of those who are ignorant about economics, or at worst is a part of an official misinformation campaign for people who think that there exists such a thing as a "free lunch".

bernanke should know that this is not a savings glut, but a credit and asset bubble.
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