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To: Oblomov who wrote (20213)	9/21/2000 12:00:53 AM
From: pater tenebrarum	Read Replies (1) \| Respond to of 436258

i HAVE seen the report, or rather the essential data of the report. i believe it is a shocking testimony to the dangerous proportions of the credit bubble... note, i take the decrease in home equity ownership amidst a raging real estate bubble as proof positive that the inflation the BLS says doesn't exist is in fact raging. remember, the ECI showed the biggest percentage increase in several years recently, implying healthy wage gains...but the fact that living costs are rising even faster, and households are thus forced to take on ever more debt to continue to keep their living standard constant, is imo what explains this latest huge expansion in debt and the concomitant fall in home equity. how the Fed arrives at the tangible asset value figures i am not privy to. but it does seem odd...if somehow the increase in durable goods has to do with it, it would make the number spurious, as it is realizable value that should be the basis for this estimate. which btw. brings me back to reminding everyone that stock market investments are NOT savings, due to the uncertainties regarding aforementioned realizable value. the value of 'savings' cannot be determined by the last trade...savings aren't tradable. back to the flow of funds report, the 13% pace at which corporate debt exploded during Q2 is further proof that the downturn when it comes can not possibly be of a benign nature....there will be blood in the streets. and if i ever learn to spell 'concomitant' correctly at the first try, i'll send youse a post card. for some reason i always try to put in more m's or t's than it requires...