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

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To: GST who wrote (87697)10/15/2007 8:08:38 PM
From: John Vosilla  Read Replies (1) of 110194
 
'And we most firmly believe that when our own greed and stupidity come back to haunt us then we have the right to expect the Fed et al to save our butts. They might want to -- they might need to even if it is just to save their own butts -- but they can't.'

Do you think Greenspan and now Bernanke feel they have inflation under control and can do what they want without repercussions down the road? Recall how Greenspan the first half 5-6 years of his regime was such an inflation hawk, blew it for Bush Sr and helped fuel the S&L fiasco/commercial RE depression. Something happened around 1994 (and I'm not referring to Clinton or the Republicans taking control of Congress) on the inflation perception front.. First it was the productivity miracle, technological advances, then the new global economy, more tax cuts and a belief by many suits at the controls in great American's like Larry Kudlow and his perception of goldilocks, too many dollars looking for a home, recycling petrodollars.. ect..so many excuses/reasons for why long term rates or why reported inflation are still so low
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