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

To: THE ANT who wrote (82874)	6/20/2007 5:55:24 AM
From: Mike Johnston	Read Replies (2) \| Respond to of 110194

Finally,we have the anticapitalist posters who hang out in anger and hate that anything can go right in our capitalistic system. When a corrupt entity has a control over nation's money supply and fixing the price of money, this is not capitalism. When the government interference into the economy is excessive, this is not capitalism.

To: THE ANT who wrote (82874)	6/20/2007 10:30:58 AM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

I totally agree with your comments however the first sentence threw me off a little as I think they were doing fine before the rescue attempt by the fed in 2002-03. 'The hyperinflation you are looking for is there, it is just covering up the deflation in assets that would have occured had we had a more restrictive monetary policy as EM assets and ours come towards one another' Many assets I refer to as collapsing are getting close to what they would have been today with a more restrictive policy and without the speculation. For instance a house worth say $100k in 2000 went up to $120k by 2003 and then $300k in 2005 and is now back to $150k in parts of FLorida.. What I see is because of excess credit and monetary conditions along with the lax lending and misallocation of capital and speculation that these assets will be way below trend in another 12 months and back to near $100k again something I doubt would ever have happened under a normal free market environment. It still remains to be seen if Mish is right in general even if that Armageddon scenario unfolds.. In general you must understand the rules of the game and play accordingly<g>