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

To: westpacific who wrote (83515)	7/12/2007 2:37:04 PM
From: $Mogul	Respond to of 110194

Yes, it is as American as apple pie. History will prevail with this once again. Every 20-30 years there has historically been a massive revaluation. This time wil be no differen't in my opinion. All the signs are there. I do think a st interest rate shock and more financial company problems, exacerbated by real estate will lead to compressed margins and lower profits for these companies. Too much unsuitable non-systamatic risk will lead the mkt lower first. Hopefully we get our washout first. It may be one of the best buying opertunities of your lifetime when it eventually comes to fruitition.

To: westpacific who wrote (83515)	7/12/2007 8:18:48 PM
From: GST	Read Replies (1) \| Respond to of 110194

End of cheap oil, labor and credit will choke the life from the American consumer, cap (or tank) house prices, and send the cost of living through the roof as the dollar tanks as the economy stalls -- it is called stagflation and leads to a lower standard of living for most everybody in the US. Beyond our shores it will be a very different story. We are no longer the center of the universe -- indeed, we will be looked upon as a cheap place to take vacation but a bad place to put your money. Our faded glory is more obvious when viewed from outside the US -- but it will soon be crystal clear on both sides of the border as inflation soars and the economy goes into a tailspin.