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

To: andiron who wrote (76946)	1/2/2007 4:34:58 PM
From: SouthFloridaGuy	Read Replies (1) \| Respond to of 110194

Because you're assuming static conditions. You're right, MEW isn't spent yet, and corporate cash is not nearly spent. The latter is more important than the former and the former isn't in any problems save for the most recent homeowners who have little or negative equity, which still in andofitself is not a big deal if these people have jobs. Once again, that alone cannot move the economy into recession. It's worth about 1-1.5% in GDP for the next 6 quarters starting with q306. Meanwhile the lid on rates is and will be quite stiumlative to M&A, Private Equity CAPEX.