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

To: russwinter who wrote (75825)	12/16/2006 3:37:29 PM
From: kris b	Read Replies (1) \| Respond to of 110194

As I said there is a tipping point where the whole edifice comes tumbling down. I have no idea what will cause (probably nobody does) it , but we should have a better idea of the outcome within the next six months. I can't wait to get my hands on the Q4 Flow of Funds. Can these numbers be monitored monthly on the FED site.

To: russwinter who wrote (75825)	12/16/2006 4:02:38 PM
From: benwood	Respond to of 110194

I'd guess that the ability of the bully class to massage the peak, and thus the transfer of wealth, to heights historically unreached has increased dramatically since 1929, both via political assistance and via financial instruments and unilateral public manipulation, and thus the game can continue longer than anyone would expect based on historical extremes. And so the NASDAQ bubble exceeded just about everybody's expectation, and now we have a similar historical disconnect in the real estate market, probably a few months past peak. The flip side of course is that the stability of the entire system is stretched razor thin, and the potential damage to the economy is likely to be far greater. For example, how many millions of jobs will reside overseas for decades because of these bubbles? The peak standard of living will have been higher, fueled by credit, but the "integral" of the standard of living from 1990 to 2040 will be much lower because of that peak than had we simply avoided the destructive bubbles.