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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: quote 007 who wrote (43630)	7/9/2003 11:22:40 AM
From: Jorj X Mckie	Respond to of 57110

you would think that we would shun another speculative bubble...oh well

To: quote 007 who wrote (43630)	7/9/2003 11:42:14 AM
From: MulhollandDrive	Respond to of 57110

>>The stubborn problem here is that Americans continue to live beyond our means, making up the shortfall by taking on more and more debt. As taxpayers, we demand more government services than we are prepared to pay for. As consumers, we've grown accustomed to "dipping into principal" at precisely the demographic moment that we should be adding to it. And as investors, the amounts we are prepared to pay for stock or real estate make sense only if interest rates remain artificially low and growth rates are kept artificially high -- which they will for a while, and then won't. this is why i remain structurally bearish...in spite of the excesses in consumer spending, my feeling is the boomer demographic will continue to ratchet the spending down, despite artificially low rates. even at zero or negative rates... the debt is a debt and needs to be repaid... and boomers instinctively know time is an enemy.