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

To: GraceZ who wrote (51772)	1/27/2006 4:42:01 PM
From: Mike Johnston	Read Replies (2) \| Respond to of 110194

We are living in a time of the greatest economic bubble in history. There are a lot of income groups which have experienced enormous income gains due to the bubble. We are talking about bond traders, investment bankers, mortgage brokers, realtors, developers etc who are literally earning more money in a year than 80% of dual income households would earn in a lifetime. We are talking about 3,5,10 million a year and this is the bottom of the ladder. Can we extrapolate the income gains that are derived from the bubble to the population as a whole ? Does a realtor that had always been averaging 100K/year, but making 700K/year during the bubble, can that realtor expect to make that kind of money for the rest of his career ? Can a home renovation contractor expect to do the same amount of business after the bubble ? Will construction workers maintain the same income ? You seem to be making a mistake of extrapolating levels of income derived from the bubble into the future. Could an amateur daytrader in 1999 extrapolate his 500K income trading tech stocks and IPO's into the rest of his life ? The bottom line is that for many workers their paychecks have not kept pace with inflation, for those that did, their incomes will suffer sharp declines once the bubble bursts.