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


To: CalculatedRisk who wrote (77854)1/17/2007 5:00:34 PM
From: SouthFloridaGuy  Respond to of 110194
 
True, but better to be consistent and right because the market will punish incorrect logic.

Advanced societies run on credit. Thus, analyzing credit conditions is crucial in understanding economic cycles. As late as last autumn, global market liquidity was as high as it was in 2004 (and that was pretty darn high).

The cheapening of money ultimately leads to INFLATION which Central Banks ultimately have to fight during every cycle.