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

To: Tommaso who wrote (69307)	9/3/2006 12:58:59 PM
From: kris b	Read Replies (1) \| Respond to of 110194

There seems to be no end to the ingenuity of lenders in inventing ways to create ever-larger amounts of debt. You need an ASSET CLASS to create new debt/bubble against. With housing, the largest of them all, going down the drain situation looks very bad. What will replace the housing as a new vehicle for credit creation ?

To: Tommaso who wrote (69307)	9/3/2006 2:14:04 PM
From: bart13	Respond to of 110194

I guess I would like to be one of those buyers. But we have got so used to perennial reinflation by the Federal Reserve that I wonder if it will ever again come to that. There seems to be no end to the ingenuity of lenders in inventing ways to create ever-larger amounts of debt. At some point, my paranoia tells me, being debt-free will be criminalized, the way hoarding sometimes has been in national emergencies. 40 year mortgages are here and I do recall having heard about (but not confirmed) the existence of 100 year mortgages in Japan. Perhaps borrowing on 401k's and IRA's, with a tax deduction thrown in could be invented? I think we're quite a ways from that debt-free penalty... and also do recall reading (probably in one of Bernanke's speeches around 2002) that one of the ways to address deflation is to put an additional tax on things like T-Bills to encourage spending & consumption.