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


To: russwinter who wrote (66542)7/20/2006 10:30:23 PM
From: Fiscally Conservative  Respond to of 110194
 
You guys talk in riddles and change the rules according to your mood. The game plan is what you deem it to be and on a moments notice can change.

Bottom line. Yes this Fed could be again pressured to cuts rates as soon as early 2007 but to what effect. How does one discount the current spending sprees. Where are the checks and balances and cause and effects. This economy is on shaky shambled tired legs and discounting reality only starves off the inevitable consequences that have to cycle back in. You add continued liquidity you will surely light the inflation fuse.

but hey,I've been drinking all night so what the heck could I know?



To: russwinter who wrote (66542)7/21/2006 1:06:35 AM
From: Mike Johnston  Respond to of 110194
 
I agree with your assessment that "Brazilification of America" is in progress.

One must be aware though, that this process has started way back in 2001 with a slaughter of retirees and savers when interest rates plunged, followed by a rinse job of renters and first time homebuyers when government sanctioned real estate bubble has developed.

It is only recently, that failed fiscal and monetary policies have began to sting the rest of population, the middle class, people which to this point have been somewhat keeping up with inflation because a rising value of their primary residence allowed them to supplement their stagnant wages through equity withdrawals or simply providing the warm feeling of becoming "wealthier".



To: russwinter who wrote (66542)7/21/2006 1:30:05 AM
From: Mike Johnston  Respond to of 110194
 
Great post.

Brazil America is sinking rapidly while Bullys are coining unbelievable amounts of (new) money. My bet is that Goldman Sachs bonuses will reach even more obscene levels than last year.

I would expect the amount of fraud and manipulation in the markets to increase. Witness Wed's action in the market. SP futures started rallying with massive, panicky and very sloppy buying a couple of minutes before official release of Bernanke's testimony, indicating a possibility of an early leak.