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

To: aryana who wrote (71073)	10/5/2006 12:35:35 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

With energy prices stabilizing there is a chance that asia will become a net exporter of deflation. The case can be made that it is happening now. The problem is there is nothing we can do about it anyway. We can't control the situation by tweaking the fed funds rate. That path only leads to bubbles and their aftermath. I feel that the fed is trying not to achieve a balance between inflation and deflation (which they cannot control anyway) but a balance between dangerous bubbles and crashing the economy which has become increasing reliant on such bubbles. Good luck B.B. I wouldn't want your job. Pretty much agree except I do not believe the Fed is fully aware of the problems (at least to the extent things could get out of hand), nor do they see themselves as part of the problem IMO. The Fed has been a huge part of the problem Mish

To: aryana who wrote (71073)	10/6/2006 2:03:35 AM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

Folks getting killed as they see their RE property taxes, insurance skyrocket adn ARM's reset. The sticker shock on 2006 bills and PITI is the story for most folks not the drop in prices so far. The drop in prices is most relevant to all the flippers and speculators. Now if/when we get that 30-50% price drop it will impact homeowners directly no doubt.. The drop in activity is most relevant to all the middlemen and tradesmen in the industry much more so than any price drop. Mish didn't even know what an REO was early this year. Now he is an expert along with all the media pimps and doom and gloomers on the internet and the boob tube. Amazing..