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

To: mishedlo who wrote (49546)	1/12/2006 1:56:21 PM
From: kris b	Read Replies (1) \| Respond to of 110194

a lot of credit creation in modern times is OUTSIDE of the Fed's purview 70%of it is outside of FED's control. but the state will continue to create MORE malinvestment (a la Japan), Privet credit collapse will easily overrun state's intervention. It will much swifter then Japan. In Japan they never allowed full liquidation of the credit bubble. The credit bubble was finance mainly by the banks, which government kept on the life support (to prevent the collapse of the banking system) with public money. In the States it is mainly privet (China, Japan, and other suckers who bought our paper)credit that will be liquidated. Do you think that the State cares about them? THEY DON'T HAVE THE VOTING RIGHTS. Americans will use as a moral justification, the old line that foreign bloodsuckers should lose their shirts. You know, it is banks fault that you borrowed the money and can't pay it back. Btw. Deflationary forces are not finished with Japan yet. Once the US economy caves in they will resume its corrective actions. Japan's financial system will finally implode under the weight of the government debt.