Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: russwinter who wrote (71071)	10/5/2006 10:19:22 AM
From: UncleBigs	Respond to of 110194

Obviously the economy is foundationally a disaster. Unemployment claims near a cycle low and skyrocketing comp store sales show the economy has not rolled over yet.

To: russwinter who wrote (71071)	10/5/2006 12:29:28 PM
From: mishedlo	Read Replies (2) \| Respond to of 110194

I don't think the economy is 'strong" at all. It's just that the consumer is quick to jump on Ministry of Truth illusions is my whole point. The bully economy is amazingly strong Look at the stock market and leveraged buyouts for evidence the bully wananbee brazilian economy is fading fast along with the illegal immigrant drywaller's economy. the real estate agent gravy train economy is now wrecked. th rest of the economy (manufacturing) never got off the ground and remains in the sewer mish

To: russwinter who wrote (71071)	10/6/2006 2:20:16 AM
From: bond_bubble	Respond to of 110194

I think people/BAs are still getting "money" to spend. Ofcourse, this "unearned" credit money is keeping the economy "strong". People will get this money until Fed fights back when inflation soars...Until then, more and more credit will be created...And this credit creation means GDP growth isnt it (as measured by BLS)? I'm not even sure if Fed has the capability to increase the interest rate (The Tbills are nowhere near Fed Funds rate) - the yen carry trade is not likely to allow the tbills rate to increase. The Fed/FCBs has to get aggressive by selling treasuries!! What are the chances of that happening? USD has to crash sufficient enough to break this yen carry trade, euro carry trade etc...