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


To: jimmg who wrote (75915)12/17/2006 10:32:33 PM
From: russwinter  Read Replies (1) | Respond to of 110194
 
<raining money onto the economy via the stock market.>

77% of all stock ownership is in the hands of the top quintile (Bullies) and that's really in the hands of the top 5%. So a stock market Bubble would only fuel more Bully inflation and totally rain on everybody else's parade, and not on the general economy.



To: jimmg who wrote (75915)12/17/2006 10:42:44 PM
From: NOW  Respond to of 110194
 
it is not going to take anything at all imo, perhaps a butterfly in mexico



To: jimmg who wrote (75915)12/17/2006 10:56:12 PM
From: kris b  Read Replies (1) | Respond to of 110194
 
3. Getting money into the hands of the average consumer is done by raining money onto the economy via the stock market. It's the old "Tricklenomics" from the Reagan days. If you rain enough money down on the rich, the crumbs will fall to everyone below. Since they need quite a bit of crumbs to fall to offset the housing bubble, they need quite a large stock market ramp which we see today.

I don't see it in Q3 Flow of Funds yet. It might change, but I am sceptical until I see higher mortgage/revolving credit (this puts buying power into their hands) borrowings by households. How can we monitor these data monthly?

"If you rain enough money down on the rich, the crumbs will fall to everyone below. "

This is speculation.