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 : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (301)	7/26/2003 2:13:35 PM
From: russwinter	Respond to of 110194

<HD, LOW and others have been doing the promotions of 6 months or 1 yr no interest game just like all the others for more than two years now > Indeed, and especially in HD's case they now have "receivables" (translate credit card debt) of 1.386b. That's 9.18% of last quarter's revenues of 15.104b. In the 8/02 qt last year recs were 1.235b on a higher revenue base of 16.277b. Taking more and more sales on credit to generate less sales. LOW hasn't been quite as aggressive with credit rec/qt rev of 3.62%.

To: yard_man who wrote (301)	7/26/2003 2:26:12 PM
From: Haim R. Branisteanu	Respond to of 110194

Wish I knew, the whole situation gets even more convoluted with the FED determined to print without abandon and prospects of run away inflation, it is difficult to figure how stocks will react. Usually in inflation stocks also move up to a certain point to reflect the company real assets inflation. Other aspect is that with higher inflation and low FED funds more people will relate to cash as trash and run to the stock markets as the bond market will collapse similar to 1987. At the time there was a complete disconnect between the stock market and bond market for well over 6 months