Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Mike Johnston who wrote (76804)	1/24/2007 9:55:56 PM
From: GraceZ	Read Replies (3) \| Respond to of 110194

So you think that if the Fed prints enough money every year to lift stocks and real estate values here by $2.5 T the $800B deficit doesn't matter ? The deficit matters as a percentage of GDP, as a percentage of assets, the debt service as a percentage of the budget. In absolute terms it is meaningless without looking at the other side of the balance sheet or in relationship to GDP. Not all that net worth gain was in real estate and stocks, some of it was the rise in the value of foreign direct investments which have done quite well in the last few years. Furthermore the Fed didn't produce the rise in house prices. The post tech bubble bust and worldwide flight of savings out of risk into "safety" did.