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

To: UncleBigs who wrote (48133)	12/25/2005 2:59:22 AM
From: kris b	Read Replies (1) \| Respond to of 110194

Kris....Russ may be right that long term t-bonds are not a good investment but I don't think those charts prove that. The charts show that either credit growth needs to slow or contract or interest rates will go higher. I think credit growth slows dramatically.” UB Sorry for not responding yesterday but my wife got pissed off at me and turned the computer off ? Since everything hinges on the world wide credit bubble, the 64K question (I don’t know the answer to it) is whether Central Banks and privet credit creators around the world will be able to reflate the faltering housing bubble. If they are successful we should all quit our productive jobs and start flipping RE for living. As a matter of fact everybody around the world should start flipping rather then produce something useful. This will guarantee perpetual prosperity . But if I am not mistaken others already tried to prosper in asset/debt based economies, namely Dutch (tulips), French (Mississippi Bubble), Brits (South Sea Bubble), to no avail. Roman Empire would still be around if it worked. So how much more additional debt can world economy handle? Infinite amount? I don’t know, but based on my assumptions I am betting on deflation caused by the collapse of the housing bubble. I am putting my money where my mouth is and I am buying more US $ (I am a Canadian) and shorting CTX. Time will only tell whether I am right or wrong. If it is former I w ill add to my positions, but if it is latter I will close them all, quit my job and start flipping RE for living as we enter a period of permanent (plateau) prosperity. Kris