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


To: John Vosilla who wrote (71909)10/13/2006 1:50:41 PM
From: Mike Johnston  Read Replies (2) | Respond to of 110194
 
It seems that our epic inflationary credit bubble is still expanding strongly, not bursting as i would have expected by now.



To: John Vosilla who wrote (71909)10/13/2006 1:53:48 PM
From: Mike Johnston  Respond to of 110194
 
I guess we should not be surprised, this is simple economics at work: low (negative) interest rates in a high inflation environment breed even higher inflation rates.

And the interest rates can stay below inflation rates, because we no longer have a free market economy.



To: John Vosilla who wrote (71909)10/13/2006 4:26:38 PM
From: Colin H  Respond to of 110194
 
Yet Bank America and JP Morgan/Chase control such a huge portion of the credit card biz these days and their stocks hitting all time highs on a daily basis

With the new bankruptcy legislation, all the loaned out money will be coming back. It is just a matter of time. So yeah, the more people go crazy the better the books look.