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.

Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (275)	4/19/2003 9:28:53 PM
From: GraceZ	Read Replies (1) \| Respond to of 4914

How is debt self correcting? When there is too much of it, the price rises and lenders stop lending. This allows what's out there to be paid down. Especially when there are increased layoffs, reduced benefits, and prices of important things (medical expenses, property taxes, home insurance, auto insurance, energy costs, etc increasing) Then there will be less money to give lenders confidence to lend more. The only way debt is self correcting is: higher paying and better jobs, more savings, bankruptcies. Au contraire, higher paying jobs leads to higher debts and less savings. At the end of an expansion when everyone is feeling good and confident, jobs are plentiful and pay is rising that's when everyone is taking on debt and running down their savings. If jobs is the answer where are they coming from? Where do you think jobs come from? Did I fall asleep and wake up in some future date where all man's needs were filled and everything that could be invented has already been invented? Jobs come from where they always come from. One set of people has a need, another set of people tries to fill it. Sometimes you don't even know you need something....like if I'd told you back in 1978 that you needed a personal computer and high speed network connection you'd have looked at me as if I had three heads since you were worried that we didn't make TVs anymore and were sure that American cars were next. Again, no matter how you toss and turn debt is a huge problem. The stats which are available in Economagic show the debt situation remains remarkably constant over time. The country should have failed long ago. Why didn't it? Must be debt isn't a huge problem. In fact, it's critical for the efficient running of society to have the levels of debt we have. Debt is a convenience that has become critical to contemporary life. When it gets burdensome people are forced to change their indolence. No I am not saying people have too much debt to work, I am saying they have too much debt to not work and layoffs are increasing! What people seem to have is a lot of fear. As for plunger, he stayed in his bond and currency plays from start to end. In my mind recognizing the trend and staying with it for the entire 11 rate cuts or whatever we had makes him a pretty bright guy . Since to be right about that isn't calculable, so how does it show that this guy is bright? IMO as I know of no others that have done that (especially with levereaged futures). The bond plays are nearly gone but he is now in currency and gold plays You won't even remember this guy when currency and gold fail to produce.