To: ild who wrote (17587 ) 8/11/2004 1:55:05 PM From: Proud Deplorable Read Replies (3) | Respond to Morgan Stanley.....why do we keep going to sources like this for information? These clowns are vested in keeping investors ignorant about whats really going down. Here's an example from the article:"The oil bubble, however, is different from previous bubbles. It creates inflation and forces central banks to raise interest rates. That could deflate the property bubble, which would in turn kill the oil bubble also. If the global property bubble deflates in an environment of rising interest rates, it will likely lead to a global recession. I put the odds for such a scenario at 30% for the second half of 2005." "China’s property market is a vast bubble, in my view." "Further, the higher oil price is sparking inflation, forcing central banks to increase interest rates. The property bubble thrives on low interest rates and plentiful of liquidity. As central banks raise interest rates, the property bubble should deflate. Hence, I don’t see how the oil and property bubbles can coexist for long. The market is exhibiting considerable enthusiasm over oil, predicting an ever-rising oil price. This is a bubble phenomenon, in my view." have raised interest rates specifically to try to kill the housing market speculation. This writer is ignorant to what CBs are thinking.
