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

To: Mike Johnston who wrote (62148)	5/29/2006 9:02:37 AM
From: GST	Read Replies (2) \| Respond to of 110194

There is not much domestically produced stuff to buy after a dollar crash. We could in theory trade places with China and be their source of cheap labor -- now there is an attractive future. No matter, we are all going to be working for Arabs just to fill up the suv for the next few years. Right now, imagine you live in the US and don't own a house -- too poor or too young or just never bought one. You would be the most screwed of all at least at the moment. The deflationists do not seem able to grasp the possibility of ten years of inflation in response to the bubble we are currently in right now. Look at the salaries being paid to new college grads -- out of sight. The average, read it twice, the average MBA graduating now pulls in 100k at an average age of 28 years old. Us old folks got houses, and the FEd will give greenbacks to the young ones to get into the game. IN the mean time, the dollar will fall apart and the cost of everything will soar. IN this scenario, the worst place to be is all cash -- US$. Best place is probably gold or at least a hard currency, which means any currency that is not in an extreme bubble. Asset prices may or may not crash -- but when the dollar goes down the drain you might not see prices for houses based in dollars go down at all. We make fun of people borrowing money they can't hope to repay, but so far they have been right to bet on inflation.

To: Mike Johnston who wrote (62148)	5/30/2006 1:38:05 PM
From: John Vosilla	Respond to of 110194

"No matter what happens, the average, paycheck to paycheck consumer will be decimated in the coming years." That part is a certainty. Seems like many are going to get squeezed from all sides. If they still have their jobs,techno gadgets and starbucks coffee many will still be happy. Take away access to cheap credit and living beyond your means and it gets ugly IMHO.. Ever wonder why Europeans in large cities seem to have a good quality of life even though unemployment is high and cost of living are outrageous?