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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 (75482)	12/13/2006 10:56:04 AM
From: kris b	Read Replies (2) \| Respond to of 110194

Don't forget the fact that most households have been getting a free ride in several aspects: So, why despite all the positives that you just listed households are broke, starved of liquidity, down to 20 days of funds on their transactional balances and down to 9 days in their demand deposit accounts? The lowest liquidity levels ever. They miss one paycheck and they are BK. Who cares about what you listed if households don't have resources to go out and spend. Look at today's stock market tape. They announced "surprisingly strong retail sales for November" and the DOW is down. The biggest jump was in sales of electronics and BBY misses their forecast. Everybody is selling at greatly reduced margin, that is why volume went up. Big deal. I guess they will make their loses up on volume. Smart money already knows what is coming down the pike and why, HOUSEHOLDS ARE BROKE, OUT OF LIQUIDITY, TAPPED OUT, UNABLE TO SPEND MORE. UNLESS THE FED CAN RELIQUIFY THEM THIS IS THE END OF THE LINE. FINITO.