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

To: regli who wrote (76475)	12/22/2006 5:58:15 PM
From: jimmg	Read Replies (5) \| Respond to of 110194

<<Looks like they are getting into quite a bit of trouble... The problem with macro concepts like household deficit is that it looked like the consumer was in trouble with a $200 billion deficit and more trouble at $400 billion and now even more trouble at $500+ billion and meanwhile the stock market keeps cranking out fresh highs. We'll eventually see a bust. No question about that. But how can you know when? Could it go to a $600, $700 or $800 billion deficit? I think yes it can. Things like Russ posting the low cash reserves are interesting but don't help me to gauge timing and magnitude of consumer behavior. With rapid borrowing and fast growing m-3, there is plenty of liquidity to fuel consumer purchases.