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


To: basho who wrote (64637)6/27/2006 1:03:11 AM
From: benwood  Read Replies (1) | Respond to of 110194
 
basho, I think if (when) that becomes the case, prices will simply rise from overseas to compensate for the increase in the perception of risk -- not unlike a payday loan shark outfit charging 60-200% per annum to those barely hanging on. A slowdown in recycling into Treasuries has already begun, but the avenues to acquire hard assets is being resisted which may ultimately leave them feeling a bit too exposed.



To: basho who wrote (64637)6/27/2006 7:32:28 PM
From: Larry S.  Read Replies (1) | Respond to of 110194
 
basho,

Thank you for your comment. I think Roach has different definition of the word than we do. I would like to believe that he agrees that the trade and current account deficits are the result of the debt fueled consumer spending.

Larry