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


To: GST who wrote (50108)1/18/2006 11:36:47 AM
From: Mike Johnston  Read Replies (1) | Respond to of 110194
 
You are exactly right.

Unfortunately, there are millions of people including the public, journalists and economists who think that free lunch is not only possible, but they have been consuming it for years and they deserve it.

After all, the real estate bubble has been widely perceived among the media and the public ( even greenspan himself) as a free lunch: "the economy is strong because of rising house prices" or "rising house prices create wealth".

As everyone knows rising house prices are a sign of economic weakness, collapsing standard of living and failing monetary system, not economic strength.



To: GST who wrote (50108)1/18/2006 11:41:18 AM
From: shades  Respond to of 110194
 
somebody will sell it to you from

I thought our military has made it clear, like empires past - if you won't give it to us on terms we like - we send in the troops.



To: GST who wrote (50108)1/18/2006 11:48:49 AM
From: pogohere  Read Replies (1) | Respond to of 110194
 
I understand you anticipate inflation, by which I understand you mean higher prices. And further, you anticipate these higher prices will be, at least in part, due to rising prices of imports as the US$ declines in value. In order for prices to hold, consumers will have to have money/credit to pay those higher prices. How do you see consumers coming up with the money/credit to pay these higher prices? My assumption is that unless consumers have more income and cash in hand, prices will have to drop. I believe Bernanke had this in mind when he talked about the need to drop money out of helicopters.