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

To: GST who wrote (74975)	12/7/2006 1:10:06 PM
From: mishedlo	Read Replies (2) \| Respond to of 110194

Japan went into deflation while its consumers were sitting on their wallets with their pockets absolutely stuffed with trillions in cash and no consumer debt. Deal with reality -- not fantasy. The REALITY of the situation is that Japan managed to go into deflation IN SPITE OF consumers sitting on cash. The REALITY of the situation that you refuse to see is that an overhang of debt with no way possible to pay it back in an environment of maxed out consumers and falling wages and anemic job growth (soon to be negative) is an enormous deflationary overhang. 1) From the perspective of looming bankruptccies, foreclosures, etc 2) From the perspective that those that do survive will have to pay back that debt at a time when housing and the stock market is declining and wages are stagnating at best GST that is THE REALITY and you simply have your head in the sand over it. The REALITY is the very thing you trump as why Japan is different makes matters worse from a deflationary overhang point of view. That is REALITY! Now please deal with it rather than your fantasies. Mish

To: GST who wrote (74975)	12/7/2006 7:02:01 PM
From: John Vosilla	Read Replies (2) \| Respond to of 110194

I believe Japan has the highest net worth per household in the world with the USA second. Amazing how so few people anywhere seem to get it with regards to interest rates, twin deficits, growth, the dollar, strength of the economy and the housing bust.. Interesting Larry Kudlow show on CNBC today. Had on John Kerry and Mr Laffler curve himself.. A must see with no one talking about the real long term interest rate conundrum versus the dollar, our unsustainable deficit growth and strength of the economy. Laffler only worried about what the drag of raising the top bracket for billionaires does on their incremental spending as if 35-39% on income really matters since most of their income is passive or sheltered anyway. Deficits apparently don't matter anymore. Kerry couldn't even understand that generational low real long term interest rates, socialized ownership society and declining dollar are incredible short term fixes (fuels?) for the economy when Kudlow got him on the incredible run in the stock market since the Iraq war. In essence we are so far behind in many respects since GWB got in office. Fortunately interest rates and unemployment remain very low so throw out that Phillips Curve for good<g>..