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

To: GST who wrote (76506)	12/23/2006 2:36:01 PM
From: jimmg	Read Replies (1) \| Respond to of 110194

Long before the US loses it's education and innovation edge, the bottom 75% will become so debt saturated that they will get deathly ill. We can then say goodbye to the illusory net worth based upon the price that the last idiot paid for an asset. I don't know when this time will begin but I'm watching for it closely. The one thing about Nike's earnings that has me thinking is the performance at their Niketown stores. They were flat. These stores are inner city in their most profitable demographics and full price retail. They never discount. Flat comps tells me that the willingness to pop full price for the latest product is diminishing. This consumption party reminds me of a line from a movie made in 1929..."spending your last 2 bits puttin on the ritz". We'll have bust. I have no doubt about that. Deflationary, inflationary or when, I don't have a clue but the longer things appear stable the more unstable they become.

To: GST who wrote (76506)	12/23/2006 7:21:31 PM
From: Mike Johnston	Respond to of 110194

According to these guys $800 billion dollar deficit does not matter, because it represents only 1.5 % of household assets and those assets are growing at 6% annually. So as long as the Fed prints enough money to keep asset prices increasing at the rate of $3+ trillion a year everything is fine ? This article is just another example of people trying to come up with arguments justifying recent economic trends as normal or "new reality" and extrapolating them into the future, when the fact is that these trends are due to a financial and asset bubble we are in. One of the errors that these clowns make is that they are confusing inflation with wealth. When this bubble bursts the $54 trillion in assets will quickly become $25 trillion in assets or the dollar will lose 50% of its value accomplishing the same result.