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


To: TobagoJack who wrote (61696)5/22/2006 11:55:20 PM
From: GST  Read Replies (1) | Respond to of 110194
 
The world is full of economic imbalances, and the main one of for US is the dollar. Real estate in the US drives import-oriented consumer spending and the awesome current account deficit. In Japan it drove export-oriented corporate investment and an awesome current account surplus. In the US the loans will be written off and the economy will stagnate as interest rates and inflation rise -- the US always has the cure for excess and it is called bankruptcy. In Japan the economy stagnated as corporate investment ceased and the loans could not be written off with bankrupting the entire private sector.

India is having fun tonight -- out on a ledge.

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