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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 (76139)	12/19/2006 10:28:11 PM
From: Crimson Ghost	Respond to of 110194

Excellent post Mike! I would add that that current financial misdeeds and illusions are very similar to much that went on during the late 1920s. Many speculators of that era were convinced the market would never again have a serious drop because "they" (the all powerful bankers and insiders) would not "allow" it. Speculators are even more confident today than they were in 1929. The "powers that be" supposedly will never allow another bear market to develop. A word to the wise.

To: Mike Johnston who wrote (76139)	12/20/2006 2:02:25 PM
From: damainman	Read Replies (3) \| Respond to of 110194

"The whole Ponzi scheme will collapse when people that provide those goods and services for nothing, wake up to the fact that they have been robbed and realize they have worked for years for nothing :" That is the problem isn't it? Long Island Guy says "don't hate the playa hate the game" but the playa IS the game and what really sucks is unless we run off and join the Amish, we are all forced to play whether we want to or not.

To: Mike Johnston who wrote (76139)	12/20/2006 2:11:15 PM
From: Real Man	Read Replies (1) \| Respond to of 110194

"The whole Ponzi scheme will collapse when people that provide those goods and services for nothing, wake up to the fact that they have been robbed and realize they have worked for years for nothing !" I fully agree. Hyperinflation does precisely that - it redistributes wealth to non-productive financial sector, from productive sectors within the economy. When people "wake up", they desire a "strong leader" that could bring down the corruption. Thus, hyperiflation usually leads to a dictatorship and a totalitarian regime. That's the ultimate economic and political nightmare. Unfortunately, I see us moving in that direction now, thanks to AG and Ben B. Fed. Unfortunately, hyperiflation or a currency crisis is also often the fate for debtor countries. We are not Japan. US is now 10% manufacturing, 90% "service", mostly "financial services"? Financial games and fast profit on inflation. The manufacturing in this country has been brutally murdered. The question is - can we do anything about it?

To: Mike Johnston who wrote (76139)	12/20/2006 2:25:53 PM
From: Rarebird	Respond to of 110194

>>The whole Ponzi scheme will collapse when people that provide those goods and services for nothing, wake up to the fact that they have been robbed and realize they have worked for years for nothing!<< At some point, players are going to realize stocks are overvalued and suddenly decide to sell. How quickly that selling manifests itself into a general panic of liquidation is important to recognize and guard against. But, it doesn't necessary argue against participation in the market despite its inherent overvaluation.