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

To: John Vosilla who wrote (78088)	1/24/2007 8:28:39 PM
From: CalculatedRisk	Read Replies (1) \| Respond to of 110194

All the bears have grown horns! I enjoyed this quote today from Davos: "You were talking about the ugly bears. The reality is that we see a lot of ugly bears growing horns and becoming bulls." Jacob Frenkel, vice chairman of insurer AIG, to Nouriel Roubini, Jan 24, 2007 Experts Ponder Impact of U.S. Slowdown chron.com For Roubini's view: rgemonitor.com

To: John Vosilla who wrote (78088)	1/25/2007 4:12:51 AM
From: Mike Johnston	Read Replies (2) \| Respond to of 110194

What happened to this board as it is very quiet It is quiet. We went down from 150 posts a day down to 30 and out of those 30, 15 posts are yours -g- I am very bearish on long term prospects for the US economy and the dollar, due to bad fiscal and monetary policies, however i am bullish on inflation. I see people making tons of money in certain professions, massive wealth being created in Asia, flood of money on Wall street. On the other hand the lower classes are struggling to make it, it is debt slavery and standard of living for the middle class has dropped sharply. However, stock market performance has very little to do with economic pain of the masses or declining standard of living or consumers up to their eyeballs in debt. In a chronic inflation environment, stock market goes up despite bad fundamentals, because the measuring unit is declining in value. To those people that underestimate inflation, it has a look of the market being detached from fundamentals. If we measured stock prices in wooden sticks of a certain length , and a share of Wal Mart is priced at 50 sticks. What happens if all the sticks in the world are cut in half ? Now, Wal Mart is worth 100 sticks. So the stock goes up from 50 sticks to 100 sticks in price, but the sticks are worth 50% less, because they are shorter and there is twice as much of them around. And everybody would wonder, where are all this sticks coming from, the world is awash in a glut of sticks ? -g- -