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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 (67918)	8/10/2006 10:47:57 AM
From: Mike Johnston	Read Replies (2) \| Respond to of 110194

A good day to sell some paper today: - dollar is surging big time - gold -12 - oil plunging -1.5 - terror alert

To: russwinter who wrote (67918)	8/10/2006 11:04:52 AM
From: mishedlo	Read Replies (1) \| Respond to of 110194

I'd estimate that credit is actually expanding about 3 times government printing, and has been the whole time we've had this discussion. It's even shocked me (as an inflationist) I have to admit. The global Pig Men have taken over "money" creation, the CB are secondary bystanders, and truly only "men behind the curtain". Russ, I do not disagree. But look at Lend, CFC, etc etc. They are having a difficult time shoving more credit down peoples throats and bankruptcies are rising. That is a very deflationary environment if it continues. Bankruptcies is a wipeoff of credit. We also have the situation where banks are continuing to lend to homebuilders because if they stop, homebuilders will go bankrupt. Tossing good money after bad? I think so. More money will go up in smoke. Watch what happens when all these real estate agents can not pay their bills. 1 out of 55 working age adults in California is a real estate agent. What do you think that will do to bankruptcies? Everyone, here and everywhere else too, only looks at the govt printing. One can not overlook bankruptcies or decreased appetite for credit. The latter are far more important. Mish

To: russwinter who wrote (67918)	8/10/2006 12:06:16 PM
From: kris b	Read Replies (1) \| Respond to of 110194

I'd estimate that credit is actually expanding about 3 times government printing, Russ, I have two questions for you: 1. As this "money" creation can't go on forever, when will Pig Men (Mr.Market?) start "money" destruction and credit contraction? Or, can they do it forever? 2.Why, if CB's are secondary bystanders, is everybody paying so much attention to their actions. Why is financial world freezing when FOMC meets to debate the rates? Who cares what FED does when Pig Men are true liquidity creators. Krisb