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


To: Oblomov who wrote (75281)12/11/2006 1:19:37 PM
From: Mike Johnston  Read Replies (1) | Respond to of 110194
 
Because the wealthy have the quickest, easiest and cheapest access to credit. They turn around and spend the new money first, lifting prices in the process. By the time Joe Schmoe gets his loan, the prices will have already risen.

Secondly, Fed's liquidity injections and bailouts enrich Wall street pig men, before the money trickles down further inflating prices along the way.