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

To: mishedlo who wrote (29962)	4/3/2005 9:35:00 PM
From: loantech	Respond to of 110194

<Japan tried for 18 years to defeat deflation with masive public spending on totally useless projects. All it got them was as federal debt of 300% of GDP and still no inflation.> True but they do have a good infrastructure now where some say the US has a need for road and bridge repair and aged water and sewer systems repair here.

To: mishedlo who wrote (29962)	4/3/2005 11:44:21 PM
From: John Vosilla	Read Replies (2) \| Respond to of 110194

In theory they COULD. In practice it will not happen. Hyperinflation would bail out debtors (the mass public) at the expense of creditors (banks, financial institutions, and the wealthy). In other words, it is an unloaded gun. So true but this would bail out the bankrupt airline and auto industries as well as the federal gov't, underfunded SS & pension plans. Wages also would rise and the coastal housing bubble would collapse all good things long term. If Greenspan was so adept at protecting his banker friends he did an awful job navigating the waters during the S&L fiasco.

To: mishedlo who wrote (29962)	4/4/2005 4:57:16 AM
From: LLCF	Read Replies (1) \| Respond to of 110194

<In theory they COULD. In practice it will not happen. Hyperinflation would bail out debtors (the mass public) at the expense of creditors (banks, financial institutions, and the wealthy).> I disagree 180 degrees: 1.) Politically it's the best thing... mass public as you say... there is NO WAY you're going to have the masses losing their homes without the Fed doing exactly what a democratic bleeding heart president and congress want them to do. NO WAY they stand pat. IMO high {hyper type} inflation scenario is a shoe in... just a matter of when. 2.) The real power and wealth aren't stogy old bond holders any more. Those old trust funds are even diversified to some extent. Most everyone with 1/2 a brain would be OK. 3.) The REAL wipe out is going to be foreign bagholders. Who cares? Of course you'll have insurance companies and the Fannie Mae ilk. They'll just have to go... or more likely, the fed will bail out debts {with worthless dollars} but not equity. DAK