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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 (53285)	2/9/2006 5:18:32 PM
From: UncleBigs	Read Replies (3) \| Respond to of 110194

The economy won't collapse for a long time if the 30 yr treasury is at 3%. That would just run everything to a higher perch. Maybe that's the plan. 3%...2%....1%.....Maybe the S&P500 will trade at a 40 p/e and that will be considered cheap because the dividend yield is in excess of long treasuries.

To: mishedlo who wrote (53285)	2/9/2006 5:57:48 PM
From: Mike Johnston	Read Replies (1) \| Respond to of 110194

It depends on how we define economic collapse. Is it when commerce grinds to a halt ? Massive bank failures ? Massive unemployment ? Replacement of currency ? Or a collapse in the standard of living for average folks ? If it is the last one, then we already have a collapse: - stagnant wages - negative real GDP growth - rising costs and inflation - massive debt loads - cash-out refinancings( burning furniture to heat the house ) - increasing tax burden - declining productivity - increasing regulation and government control IMO the economy will always somehow function, banks will be bailed out, the unemployed will receive benefits. The true measure of a sick economy will be massive decline in the standard of living.