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

To: Elroy Jetson who wrote (45327)	11/11/2005 10:37:37 PM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

This time out we have the debt overhang and such overvaluation levels in many RE markets that we never had at the beginning of the spike in oil prices and interest rates in the early 1970's. We also now have this new so called global economy with excess dollars slushing around looking for a home. I see a merging of the stagflationary 70's and debt cleansing of the early 90's on the consumer side this time as the most likely outcome. I think Bernake does what needs to be done to keep the strength of the financial institutions intact and not let a situation as bad as the RTC days unfold. If it does then it could get extremely ugly.. Of course Sir Alan started preparations for this last year in calling for the gullible American public to go into ARM's when they could get a 30 year fixed near 5%