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To: Think4Yourself who wrote (74063)	9/21/2000 11:05:01 AM
From: SliderOnTheBlack	Read Replies (1) \| Respond to of 95453

o/t inflation.... More great comments from Fleckenstein: <<Greasing the wheels. . . Speaking of rising oil prices, my friend Colin Negrych recently offered a succinct description of the present inflationary environment created by the Fed and other central bank pranksters: The G-7 seems to expect it can print all the money required to paper over every financial market crisis that erupts in the hopes that propped up asset markets will greatly increase aggregate demand. Yet they seemingly expect increased aggregate demand not to translate into demand for commodities, especially oil. In short, they hope to limit the inflationary consequences of their monetary ministrations to asset prices where inflation is roundly welcomed rather than being seen as the threat history has repeatedly and clearly demonstrated it to be. The current price of oil reflects the fact oil production and delivery capacities have not kept pace with the growth in demand for energy which resulted from monetary madness. Oil prices manifest what central gold sales and bond purchases disguise: inflation.>> Wages are off the chart; healthcare & benefits are off the chart, tight, tight labor marekt, rising commodties, and consumers are spending themselves silly.... MDW today; DOUBLED their reserves this qtr for consumer loan loses (Discover Card) by the way.... the low-middle/middle class consumer & especially the "subrprime" customer that I referred to in prior posts who was literally "flooded with cash & credit" during this economic boom has overspent to a degree that the next wave of bankruptcies & defaults will stagger & rock the consumer finance markets - I guarantee you this will be a HEADLINE event in 2001 - it will shock the markets & there is a huge, huge cover up in delinquencies & pending defaults in the financial market. Get out of any & all financials with consumer finance and especially with ANY exposure to subprime lending in Mortgages , Auto , or consumer loans. Let the economy slow next year; let companies get decimated for missing their earnings & revenue targets & then watch the round of corporate cutbacks - which will rock consumer sentiment & bring home to roost all those no equitey refi's & 0-3% Money Down New Home purchases in a Real Estate Bubble in some markets - to where many new homeowners will find out they have negative equity when the economy slows and they become layoff/cutback victims... We are going to enter the pentultimate sweetspot for Gold soon, very soon: Inflation AND a slowing economy with an inflated bubble equity market that can NOT make it's comps going forward... The house of cards is wearing no clothes... Gold; the "Black" varietal for now - the ole' "Yellow Dog" - soon, very soon !!!!!!! - bank on it.