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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 (8151)2/15/2004 1:26:05 PM
From: Jim Willie CB  Respond to of 110194
 
nice piece by my friend Chris Temple
he has a firm grasp of the many versions and shades of 'Flations

he and I are very consistent

"Inflation + Deflation = Chaos (not zero)"
financialsense.com

he seems to think that corporations are acutely in pain now
but that households are next to the financial gallows

Just as with the vicious circle of price declines leading to more layoffs leading to reduced business spending, etc. above, weak economic growth (let alone a contraction) in an environment where everyone is already in debt up to their eyeballs starts its own vicious circle. Now the dominoes that are falling are of businesses that can't pay their bills, and fail. That eventually cripples others, some of whom also fail.

This has already been happening in the corporate sector most acutely; next to join in, according to some of the most pessimistic forecasters, are households.

/ jim