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

To: benwood who wrote (56155)	3/18/2006 9:59:21 AM
From: russwinter	1 Recommendation Respond to of 110194

Kindleberger's book has a number of editions, so it changes, but doesn't really matter which one you read. All manias and panics follow a pattern, with same overall characteristics, the primary one being huge leveraged risk taking for small rewards. amazon.com One of the older editions gets into the economic concept of "loading" which I feel offers a good explanation of why Americans today borrow so aggressively. Basically it means people will rationalize any reason they can, including believing in the tooth fairy in order to maintain their standard of living. In otherwords they have convinced themselves that housing and asset Bubbles are an entitlement. That's what makes warnings like this one totally ineffective, jeannie is out of the bottle. marketwatch.com