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

To: russwinter who wrote (53586)	2/12/2006 2:20:28 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 110194

You are probably right. But we cannot be certain how this will unfold. I was listening to the latest Don Coxe this morning and certainly found that his suggestion that China (as well as the commodity boom) could go on even with a deflating US housing bubble, made sense. So even I Bernanke does not inflate, or if he tries to inflate without success, this might be bad only for a certain class of individuals in North America. I am not smart enough to reach any conviction on the outcome of this drama (gold being the exception of course), so I will keep watching and reading.

To: russwinter who wrote (53586)	2/12/2006 2:24:35 PM
From: UncleBigs	Read Replies (2) \| Respond to of 110194

a ‘Ponzi’ finance unit must increase its outstanding debt in order to meet its financial obligations.” --Hyman Minsky In my view the entire U.S. economy is Ponzi finance unit. I see much more than a 10% decline in gdp to reach a sustainable equilabrium. 30% is probably much closer when you strip out excessive residential and commercial real estate development, remodeling and the velocity impact of the artificial (unsustainable) speculative income. Russ...I think you are right about the Bernanke printing press trade. It's something to watch how it develops over time. Everything went straight up after Bernanke appointment. His appearance this week before congress may be quite disappointing to the easy money advocates.