Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (203632)	11/8/2002 10:05:31 PM
From: reaper	Read Replies (3) \| Respond to of 436258

KT -- IF we do in fact get a serious deflation, one would think that a primary repercussion would be the revelation that much of our 'money' is backed by specious assets (which will then of course feed back into the loop, causing more deflation, causing more assets to be revealed as unreal, and so on....). now of course much of this 'money' backed by assets of dubious (to be kind) quality is made into 'money' thanks to the full faith and credit of MBIA, Ambac, GE Capital, and FSA. it is therefore my opinion that in a deflation the credit guarantors will be de-capitalized. since these are also the guys that make high-grade munis high grade, it would seem to me that, in the coming deflation, IF one were to believe one were coming, high-grade munis would be a particularly crappy investment, and levered high grade munis would be, what did you call it, 'death on a stick'? just thinking out loud. Cheers