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

To: Mike Johnston who wrote (70633)	9/29/2006 10:55:47 AM
From: russwinter	Read Replies (2) \| Respond to of 110194

The larger issue is that there is way too much ficticious capital (capital without real backing) out there, right at the time that the actual servicing or return on this capital is shrinking. This story on vacant houses for sale is an ilustration: housingdoom.com The point is the Ponzi debt backs these properties, and this can only be supported by more Ponzi units, to pay the old units, and that is inherently unstable. Can only mean one thing, a crash, or some kind of financial asset deflation (not to be confused with consumer inflation) is in the works.