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


To: NOW who wrote (23330)12/14/2004 8:19:09 AM
From: russwinter  Read Replies (1) | Respond to of 110194
 
<so i take it you think the housing market does well in that environment?>

No, not necessarily, I'm talking exclusively about borrowing on these inflated assets by Bully, given the near non existence of prudent credit standards and placing interest rates far below inflation rates. Once the Fed pauses (because non-Bullys are increasingly in trouble(*)it will be a green light for even more aggressive Bully carry trades and inflation generation. The MoP will intervene on the USD and by proxy gold, so that their flawed, bankrupt policy has the appearance of being correct to the cognoscenti. This will the MoP at it's worst.

(*) From Rasmussen today:

Thirty-four percent (34%) of Americans say the U.S. economy is getting better while 50% say it is getting worse.