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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 (50397)	1/20/2006 11:04:35 AM
From: John Vosilla	Read Replies (2) \| Respond to of 110194

Citigroup and Bank America cross below 200 dma today. Basically back to end of October prices.. Significant?

To: mishedlo who wrote (50397)	1/20/2006 2:11:55 PM
From: Claude Cormier	Read Replies (2) \| Respond to of 110194

The problem of course is consumer debt is NOW a far bigger problem. Banks and the FED will not want to bail out consumers at the expense of themselves and corporations. That should be logical IMO, and that is why I discount the helecopter drop.The other problem is that hyperinflation more or less ends the game. Deflation allows the game to continue. All logical. But was it logical for Greenspan to collapse the rates structure to the extent he did and create that debt bubble. Bernanke might say that corporations will be better off if continues to favor and stimulate the consumer's potential to spend. As my example showed and as you seems to agree, it is easy to drop money. Third, reasonable inflation short of hyper can also be used to lessen the burden of debts without purging them. That is what Bernankle seems to think. And he probably also believe that when enough is enough, he can again repeat what Volker did in 1980 and restart a new cycle, avoiding both the immediate depression or future hyperinflation.