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

To: russwinter who wrote (4669)	1/9/2004 3:23:30 PM
From: mishedlo	Respond to of 110194

Russ I think the risk in equities IN general is that if Us stocks tank the whole world is gonna tank. However will it? Today seemed very distributory but every time we just keep making higher highs M

To: russwinter who wrote (4669)	1/9/2004 4:42:07 PM
From: mishedlo	Respond to of 110194

Disapparing Jobs (This is why DEFLATION wins IMO) safehaven.com Outsourcing or offshoring at one end and Walmartization at the other end in endless series of McJobs are changing the face of the economy. Consumers are over indebted having gone on a spending binge in the late 1990's and have been unable to break the habit so far in the early 2000's with both mortgages and consumer credit card debt at record levels. As a result of the squeeze on jobs on one hand and record debt levels on the other we face a potential meltdown once we actually go into a recession. Consumers are 70% of the economy and if they don't have jobs they don't consume. Bankruptcies and defaults have continued at record paces despite the so called booming economy. Credit card delinquencies have reached an all-time high. While there had been some indications that there was going to be an improvement in the job market the most recent employment numbers have thrown cold water on that theory. It sometimes seems that we see announcements daily of plant closings and lose of a few hundred jobs here and few thousand jobs there while moving the production or function offshore. The unemployment rate has shown little signs of actually falling guaranteeing a further rise once the current debt and money fuelled economy comes to an end which it will. And when it does it won't be pretty and the current level of disappearing jobs will accelerate further.