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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 (76651)12/26/2006 2:08:34 PM
From: John Vosilla  Read Replies (3) | Respond to of 110194
 
Recall how people were much more likely to save in the Bush Sr years after the 87' stock market crash and during a S&L fiasco in an environment of very positive real interest rates and condensed multiples on all asset classes. An 'inflation fighting' Greenspan back then was aggressive in dropping fed funds several years later than he should have.. Now we are 360 degrees in the other direction IMHO..



To: Mike Johnston who wrote (76651)12/26/2006 2:13:31 PM
From: jimmg  Read Replies (3) | Respond to of 110194
 
<<Maybe people would start saving if interest rates were positive ?

Mike, 99.999% of the people doing the borrowing and spending don't think about the interest rate versus inflation. They want a new car or house or home theatre system and they care only about the monthly payment in relation to their income.