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

To: mishedlo who wrote (2262)	11/17/2003 9:27:09 AM
From: russwinter	Respond to of 110194

<FNM has also come out with "skip a pay" mortgages that just might mask some credit problems. > This says it all, doesn't it? How many payments can homeowners miss? Keeping with my food theme (Sizzlers, etc), here's how I'd describe current economic conditions. Imagine a grill filed with water soaked charcoal that has sat through a few spring rains. Next the CBs led by the US Fed comes along with a gallon of gasoline (not lighter fluid)pours it on, and lights a match. Everything starts burning, including some of the wet charcoal. The only problem: chunks of debris have landed on the roof shingles, and now there's a big blaze going on up there. Meanwhile the wet charcoal (US economy) just quickly burns out. Heavy price to pay for some short gratification. What do ya do now, Easy? I think discussion of inflation or deflation kind of misses the point. The central issue are the serious misallocations, maladjustments, and distortions that are now on the scene.