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


To: westpacific who wrote (65342)7/6/2006 9:27:24 AM
From: skinowski  Read Replies (2) | Respond to of 110194
 
all I see is uncontrolled raging inflation.....................

And yet:

Weekly wages adjusted for inflation fell 0.7% last month and are down 0.2% over the past year, according to a report last week by the labor department. Pay has been flat or declined in more than half of the 65 months since January 2001."
( Message 22598218 )

How is it possible to have both at the same time? If buyers can't afford to pay the increasing prices, that simply means that there will be a scarcity of buyers. Prices will have to come down. It takes two to tango. Prices can't keep inflating if there isn't enough liquidity out there to pay them.