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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (19565)	12/27/2004 2:09:15 AM
From: Rational	Read Replies (1) \| Respond to of 116555

That is your theory and you are entitled to it until it is proven wrong. So my theory has not been proven wrong, contrary to your previous assertion as follows: Therefore your theory has already been proven wrong. To be sure, my "theory" admits downward adjustment of prices depending on local economic condition. This "theory" merely contests wild assertions that there is some secular real estate price bubble waiting to burst to cause wide spread gloom and doom. A big force acting in my theory's favor is that large money lords cannot short-sell real estate (except builders' stocks) while spreading gloom and doom to profit from manipulation as they do in stocks.

To: mishedlo who wrote (19565)	12/27/2004 6:47:05 AM
From: Crimson Ghost	Read Replies (7) \| Respond to of 116555

PIMCO director pushes for DRASTIC policy changes to deal with global and domestic imbalances including the partial repudiation of US debts owed to foreigners. 10:42p ET Sunday, December 26, 2004 Dear Friend of GATA and Gold: Chris P. Dialynas, managing director of Pacific Investment Management Co. (PIMCO), the big bond house, has just written a comprehensive study of the international financial situation, "Trouble Ahead, Trouble Behind." It purports to outline a remedy to the explosive imbalances in the world economy. Dialynas' program includes: 1. Cut by 15 percent across the board all U.S. social spending programs. 2. Increase U.S. tax rates. 3. Increase incentives to save in the United States: consumption taxes. 4. Devise capital controls such that capital cannot be exported out of the United States. 5. Debt renegotiation/forgiveness by countries with cumulative high trade surplus with the United States. 6. Change the Federal Reserve Board's objective function to include a constraint on the trade deficit. 7. Prohibit the sale of highly sensitive technology and defense to all foreign countries. 8. Revalue China's currency to U.S. dollar by 40 percent. 9. Enact targeted protective tariffs if needed. 10. Renegotiate the World Trade Organization. 11. Prohibit the Fed from purchasing bonds from foreign holders of U.S. debt. Conscientious as Dialynas is, he may succeed mainly in demonstrating the likely political impossibility of any escape from disaster -- and in raising once more the question of why Pimco, which repeatedly generates analysis like this, arguing that U.S. debt renegotiation/repudiation is inevitable, should be so heavily invested in, of all things, U.S. government bonds. You can find Dialynas' study at the Pimco site here: pimco.com tm Or try this abbreviated link: tinyurl.com