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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 (75070)	12/8/2006 2:46:52 PM
From: loantech	Read Replies (1) \| Respond to of 110194

A home is not an asset unless they have equity right? <G>

To: John Vosilla who wrote (75070)	12/8/2006 3:14:50 PM
From: Mike Johnston	Respond to of 110194

I think they try to keep the current dynamics with negative low interest rates and ample liquidity going for as long as possible. I agree, but there is no free lunch in the long run. Negative interest rates will put continuous upward pressure on inflation. The Fed will enter a path to hyperinflation the minute they start pegging long rates (if they have not done so already). Somebody will have to pay the piper at some point. My guess is that bottom 30% on the income and wealth scale will get absolutely crushed, with the top 20% doing very well and perhaps top 5% becoming extraordinarily rich and controlling most of the country's wealth.