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

To: russwinter who wrote (29321)	3/24/2005 3:01:22 PM
From: redfish	Respond to of 110194

Could very well tank the economy.

To: russwinter who wrote (29321)	3/24/2005 3:06:04 PM
From: Ramsey Su	Read Replies (1) \| Respond to of 110194

If they do not require any payments, it is kind of difficult for borrowers to default. <ggggg> I understand that there are a number of borrowers who take advantage of the teasers offered by credit card companies. They transfer outstanding balances from card to card with no payment nor interest for 1 year. So are those programs going to stop now? on an unrelated subject, just talked to a friend who is in the process of tearing down his old house and rebuilding new, in a pretty nice area of San Diego. He was surprised when the bid came in at $640,000 for a 2,200 SF house, almost $300 a foot. No shortage of work here for contractors.

To: russwinter who wrote (29321)	3/24/2005 3:23:13 PM
From: benwood	Respond to of 110194

My credit union sent a letter explaining their minimum payment increase from 2 to 2.5%. It lowers a hypothetical payoff of a $2k loan from 104 to 90 months. Yowzer! Almost 8 years to pay off a 2k loan!

To: russwinter who wrote (29321)	3/24/2005 5:18:39 PM
From: ild	Read Replies (1) \| Respond to of 110194

From today's CI: idorfman.com idorfman.com As you can see, never in the last 25 years has the year over year rate of change in PPI intermediate materials prices relative to the like measure of CPI been as high as we have experienced over the last few months. Again, this suggests that perhaps one of two things is driving this relationship. Either the CPI is wildly understated at the moment, which is a very good possibility, or the pressure on corporate profit margins broadly vis-à-vis input costs is becoming significantly meaningful, which is also a very good possibility. So which is it? Quite sheepishly, it’s probably a little bit of both. But in terms of forward Fed actions, it probably really doesn’t matter which explanation is correct. Either way, it sure appears that the Fed will need to address this dichotomy. And they appear to be publicly telling us that they will. Again, the ramifications for the credit cycle versus business cycle question loom large as we move forward.