Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: russwinter who wrote (12244)	4/20/2004 9:14:15 AM
From: gregor_us	Read Replies (1) \| Respond to of 110194

But it's Not Because of Wages or Employment, Russ. As I'm sure you agree. The "too much money chasing too few goods" that we are seeing now is a synthetic version of the classic textbook version. Millions remain unemployed and underemployed. Real unemployment is near 10%. America's wages are falling. Falling hard. Population growth is now overwhelming the economy's ability to create jobs. The employment gap is real. The synthetic inflation, however, can all be taken away this very afternoon by Alan Greenspan, with mere words. That's how synthetic is your "too much money chasing too few goods." That's how thin, it is. Were Greenspan dealing with a job and wage driven "too much money chasing too few goods" he would need to embark on a long, hard-fought campaign. You can't take the real version away so easily. Do you want Greenspan to lift the curtain on our OZ, this afternoon? Because behind that curtain is a Monster Deflation. Greenspan can actually "prove" this by hiking rates. It would all be gone in 2 seconds.

To: russwinter who wrote (12244)	4/20/2004 9:20:29 AM
From: Wyätt Gwyön	Respond to of 110194

even if credit contracts and real wages do not grow, there is still "room" for inflation in necessities. basically they can take up a larger wallet share. according to Simmons, Americans spend more on cigarettes and alcohol than they do on all forms of energy, including electricity. maybe there will be fewer tummy tucks for pet poodles in the future to accommodate higher prices.