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

To: westpacific who wrote (9259)	3/3/2004 2:39:59 AM
From: Haim R. Branisteanu	Respond to of 110194

well do not know if it will come true, BWDIK

To: westpacific who wrote (9259)	3/3/2004 8:43:54 AM
From: Oblomov	Read Replies (1) \| Respond to of 110194

As Gary Shilling pointed out back in 1998, to get deflation the savings rate would need to go up. As many economists have correctly pointed out, the savings rate does not include increases in wealth due to capital gains, so the savings rate is really higher than the reported rate. Nonetheless, it is the choice of households to divert INCOME (rather than capital gains) from consumption to savings, despite the accomodative stance of policymakers, that results in deflation. We'll see... my portfolio is positioned for either inflation or deflation, not so well positioned for price stability.