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

To: UncleBigs who wrote (65495)	7/7/2006 11:41:35 AM
From: Real Man	Read Replies (2) \| Respond to of 110194

Message 22603607 Maybe, but I don't see it, quite the contrary

To: UncleBigs who wrote (65495)	7/7/2006 11:58:26 AM
From: GST	Respond to of 110194

<savings rate that has nowhere to go but higher and a debt to gdp ratio that has nowhere to go but lower> You are dreaming. The public portion of our debt will soar higher and higher when we have an economic slowdown -- the tax base has been gutted. Most people will watch their savings erode as prices soar with a weaker dollar. The income needed for savings will stagnate against a backdrop of steadily increasing inflation. Both public and private debts will cost more to service -- unless bankruptcy becomes so widespread that it wipes the slate clean -- highly unlikely to help with the new bankruptcy law and impossible at the nation state level. Americans will be transformed from wasteful people who chose not to save to into poor people without the ability to save. They will work to pay the interest on their existing loans.