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

To: jackjc who wrote (31160)	4/25/2005 3:01:31 PM
From: bluepearl	Read Replies (1) \| Respond to of 110194

"We can't have pyramiding defaults, where savers wind up with the assets at a discount. Need to balance the loss as evenly as possible by printing and guaranteeing." Heh. Please tell me this is some kind of joke. In this interest rate environment, being a "saver" is equivalent to being short essentially everything. Savers are betting that assets will be discounted in the future or how in the bleep can you justify the wealth erosion? If I have $1,000,000 in savings I get get $40,000 a year in interest that is subject to tax. Or I can buy 20 houses and stand to make $100,000+ a house. Of course to do so entails risk. What you are suggesting would seem to eliminate the risk side of the equation. In that case you might as well drop money out of the sky as it will soon be worthless.