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

To: ild who wrote (33271)	5/26/2005 2:30:31 PM
From: ild	Read Replies (6) \| Respond to of 110194

Date: Thu May 26 2005 13:49 trotsky (P.Yorkie) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved "Housing price bubbles have occured in the USA before ..." never on an even remotely comparable scale. this is the mother of all bubbles. "... and like I say my broker used to work for a bank and says they don't loose much on private housing .. it's commercail stuff they loose on." ( sic ) when the last housing boom broke, the entire savings and loan industry went under. this time the pain will be infinitely worse, as over 60% of bank assets are now tied to real estate, and the bubble is about two to three times larger, depending on which yardstick one uses to measure it. the reason why no money has been lost YET is that the bubble hasn't burst yet. but it will. on a side note, in spite of the boom still raging out-of-control basically, the number of foreclosures is at or close to a record high. it is not too difficult to imagine that foreclosures will go off the charts once the bubble breaks. there will be more money lost than ever before in history, anywhere, imo. Date: Thu May 26 2005 12:10 trotsky (frustrated@Snow-job) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved once the now extant asset bubbles pop, the budget deficit will probably explode just as Japan's has done, as the government goes into Keynesian deficit spending mode to rescue the banks etc. so by 2009 the most likely state of affairs will be new record highs in the deficit/GDP ratio. Date: Thu May 26 2005 12:04 trotsky (@McClellan) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved anyone with a little sense of history will be chilled by the incredible assertion that the "US forces were 'invited' into Iraq and Afghanistan..." this is exactly how the Soviet Union used to describe its various military interventions in the former Eastern Bloc, and later Afghanistan. they were 'invited' ( by their own puppet governments of course, which is the other remarkable parallel ) .