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

To: bart13 who wrote (71199)	10/6/2006 3:09:42 PM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

It is possible a lot of business will go under first not being able to pass through the added costs of doing business in an inflationary/higher interest rate environment. Can we save businesses and in an indirect way overleveraged homeowners by a short bout of deflation and another round of generational lows in interest rates somehow overlooking how much rent,CAM(common area maintenance), labor costs ect.. cost in order to stay in business and provide basic services for the public? Is that the hope/intent of our leaders in DC and Wall Street? Tax cuts on a federal level while costs skyrocket on a local level and all is okay? Remember state and local municipalities don't have the ability to print money like the federal government. So what happens to county and city interest rates on their municipal bonds? Sounds like we add more fuel to the fire long term keeping the misallocation of capital and overvalued assets at extended multiples alive since attempting to do this would make the 70's look like a walk in the park the next cycle..