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

To: Mike Johnston who wrote (75012)	12/8/2006 10:40:49 AM
From: suanny	Read Replies (1) \| Respond to of 110194

I seem to have misunderstood the great depression.All those people depicted in "Grapes of Wrath" and such had huge savings,waiting for prices to drop enough before making purchases.I had been under the mistaken impression that people were unable to pay loans used to purchase assets which lost value,so the borrower and the lender were both a little strapped for cash.

To: Mike Johnston who wrote (75012)	12/8/2006 2:41:18 PM
From: John Vosilla	Read Replies (2) \| Respond to of 110194

'Here in the US things are totally different, most people have no significant savings, while having huge debts.Their only "assets" are a home and 401K' How is that offset by the top let's say 5% and corporate America swimming in record liquidity and cash on their balance sheets? I agree with your other comment the only deflation we will have is in the purchasing power of your dollar the only question is the magnitude. I wrestle with those in power giving into incrementally higher inflation to bail out Joe6pack. I think they try to keep the current dynamics with negative low interest rates and ample liquidity going for as long as possible. Much higher interest rates in a short period is what would destroy our economy IMHO and totally crush Joe6pack.