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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.29+0.6%Nov 7 4:00 PM EST

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To: Elroy Jetson who wrote (42234)11/3/2008 8:31:52 PM
From: THE ANT  Read Replies (2) of 217588
 
That is why credit bubbles are inherently unstable.As assets and goods are bought more and more on credit the willingness to gamble goes up as does the impulse to default.The recent credit bubble of 380% credit to GDP took 50 years of memory cleaning, then 20 years of stability to lull people into thinking their money loaned at low rates was safe.That is why it is impossible for the govt to build the bubble again.Inflation is not bubble building and will in fact further deflate the asset bubble when adjusted for inflation
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