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 : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Arran Yuan who wrote (67975)	8/23/2005 3:10:26 AM
From: TobagoJack	Read Replies (2) \| Respond to of 74559

<<Sir Alan and BBB (big-mouthed Ben Bernanke)'s wildest dreams turning true>> Yes, wild dreams, but will not turn true. For the gentle fools are aiming for wage inflation triggered by monetary inflation to wash debt-ly sins away. What is happening is more debt arranged ever more dangerously, on all sorts of things, at all different levels, absent wage inflation, but paired with job loss, and real wage stagnation. <<conundrum, chance of this scenario is slim>> Consider some random thoughts arranged in no particular order: (a) monetary looseness encouraged equity, real estate and commodities booms / bubbles / whatever one chooses to call them (b) same looseness generated costing pressures on the genuinely productive sectors of the economy, necessitating outsource, holding down wages, in concert with China, India, E.European reforms (c) bubbles naturally burst or deflate, and when do, prices go down, especially for highly valued and leveraged assets We need food, education, health care, minerals, and energy. We have stocks, bonds, and real estate. Ponder on which stuff will deflate and what matters will inflate, and categorize them into "what we need" vs "what we have". When France experienced fiat money inflation under an electorally accountable governing schema otherwise known as bread and circus, it also had a boom, in most assets, and at the same time lost jobs due to lack of sincere investment and thrifty savings (from current income), and then ... revolution, triggered by default, depression, confiscation, etc, you know, it is an old script, to be taught again and once more, every so often, and ends the same way each and every time, very dependably. Check out the dusty books and musty archives knowledgerush.com Chugs, J