Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Tommaso who wrote (37376)	7/31/2005 12:38:04 PM
From: loantech	Read Replies (1) \| Respond to of 110194

If the majority of the people in a building inform me that the building is on fire, I will tend to believe them.> Good point! But when a majority of borrowers I see at my home loan desk want 100% financing I say they are wrong. BWTHDIK? Not much compared to most posters here. Tommaso I admit I understand little but in regards to this: <To predict deflation is to predict such a contraction in the money supply. That kind of contraction does not happen with a fiat monetary system.> I say that wages are not keeping up with increased debt loads. I cannot see how people will get out from underneath their blanket of excess debt unless they are saved by inflating wages along with asset prices. So if eventually we have foreclosures or bankruptcies or the market turns south when it flounders from excess debt per home purchase vs a non increase in income what happens??

To: Tommaso who wrote (37376)	7/31/2005 12:45:42 PM
From: philv	Read Replies (2) \| Respond to of 110194

I think credit is money printing. Ever increasing debt is not included in these figures. Of course, if the debt is paid off, it would be a different story. National debt and private debt has exploded over the years. What are the chances that they will ever be paid off or even paid down? In whose lifetime? That is money creation out of thin air thanks to our FED inspired fractional banking. It must result in fiat funny money depreciation and inflation.....eventually.