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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 (75898)	12/17/2006 7:22:12 PM
From: kris b	Read Replies (1) \| Respond to of 110194

However, the very wealthy, say top 10%, still have the potential to panic and mobilize money, by selling USD financial assets, converting them to cash, and engaging in an inflationary Flucht in die Sachwerte. I don't think they would do that. Who would buy if they all want to sell? Certainly not the JSM. The prices would collapse unless the buyers of last resort FCB or FED step in. They can only start Flucht in die Sachwerte if they keep/don't (hoarding, artificial shortages) sell the existing assets, and the new money supply will be redirected to this assets (liquidity chasing shrinking quantity of things to buy) creating hyperinflationary pressure. How will this help JSM (still main driver of the economy) if one of the hyperinflating assets isn't her primary residence.