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

To: John Vosilla who wrote (28023)	3/7/2005 4:36:54 PM
From: Ramsey Su	Read Replies (2) \| Respond to of 110194

John, I assume I am similar to many on this thread. By that I mean I read 1000 articles a day, trying to figure things out. The best "study" I read (I forgot who wrote it) was about how housing bubbles burst. There are two main points that I agree with: 1. there is no nationwide housing bubble. 2. housing bubbles burst, in specific areas, because of some external factors, most notable being employment. Therefore, if you believe that better opportunities are ahead, then holding cash is good. In spite of the likelihood that your cash may be diminishing in value, it may be diminishing a lot less than the assets you are targeting. Having said that, I believe this time is different. Our fiscal and monetary policies have created such an unstable environment that I do not think our economy can handle any shock to the system. With so much money (supposedly around $1 trillion) in something like 10,000 hedge funds, all hell can break loose very easily. I do not see any safety valves for such an event. As we all know, Greenspan is spent to the limit and the credibility of our government is non-existent. Now how's that for a wishy washy response. <ggggg>