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


To: regli who wrote (48136)12/25/2005 3:01:46 AM
From: kris b  Read Replies (1) | Respond to of 110194
 
“How can the current account go to zero if we don't produce many of the essentials”

Simple, once housing bubble pops we are all broke and don’t have money to buy imported goods. Imports collapse by 200-400 B a year. Even if FCB want to lend
us the money, what is the collateral? No more MBS’s and ABS’s to sell. Will they give it to us for free?