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

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To: Skeeter Bug who wrote (101453)2/20/2009 8:01:09 PM
From: Boca_PETE  Read Replies (2) of 110194
 
"they will monetize the massive debt they are foisting onto the worker class."

If the core cause of the current credit collapse is falling real estate values, I believe monetizing the massive debt to create enough inflation to stabilize real estate values will help stabilize the economy. If successful, loan collateral values would stop falling or even start rising. This would slow or stop people from walking away from their mortgage debt which would slow or stop the increasing number of homes being put on the market. The cost of this will be a reduction in what our money will buy spread widely over our country's population.

The wild card is the domestic impact of credit collapsing outside our country and the financial and social disruption that causes here and abroad.

This is a god awful mess, for sure!

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