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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 (9745)	3/8/2004 6:23:54 PM
From: russwinter	Read Replies (2) \| Respond to of 110194

<I seriously doubt hyper-inflation as long as we are losing jobs.> I repeat, credit is expanding 7.4 times the rate of wages and salaries. Credit growth is the the tiger in the tank fueling inflation, not jobs. Stagnant wages and salaries (the wildcat) will just make paying off the debt more difficult. The first factor, credit growth trumps the latter (debt servicing) at least in the foreseeable future. My evidence: look at credit spreads, and credit insurers like MTG, MBI, PMI, and the financial ETFs like XLF. If they roll over decisively, then maybe inability to service debt becomes the paramount issue. What would cause them to rollover, credit contraction or slowdown. Right now people can take out new loans to service payments on old debt. I see inflation continiuing to skyrocket as a result. Hope I spelled everything OK there, confusing my dog with the Republic apparently.