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

To: kris b who wrote (75503)	12/13/2006 11:09:53 AM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

'Smart money already knows what is coming down the pike and why' Yes and who might that 'smart money' be on this board? MJ layed out a very nice balanced view and you like your other myopic buddies extrapolate soup lines for the majority of Americans as the end game. What world are your guys living in? Are you all based out of Toledo or Danville?

To: kris b who wrote (75503)	12/13/2006 11:41:37 AM
From: Mike Johnston	Respond to of 110194

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. Yes, millions of households are in dire straits. For most it is because their wages are not keeping up with inflation, for some because they had to spend 8x salary to buy a house and now can't make the payments, some lost 50% of their life savings due to inflation in the last six years, some cashed out house equity to maintain the same standard of living in a highly inflationary economy. But the top 30-40% are doing very well, and top 10% are literally swimming in money. This is exactly what i have been predicting and Russ Winter coined a great phrase that reflects this process, it is called "Brazilification of America". And i predict here that there is going to be some rough sledding ahead for bottom 50%.