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

To: shades who wrote (83539)	7/12/2007 11:36:19 PM
From: $Mogul	Read Replies (2) \| Respond to of 110194

"Even Bernanke took out a HELOC" There you have it. Central bankers know the game. If you told me that uncle Ben paid cash for his house then that would be amusing. The institutional and private equity world is leveraged to the hilt in cheap yen, to invest in high beta assets. Get the picture. Does it really matter if the cost to carry is .25, .50-100bps. It is the cheapest currency in the world to borrow and it would still be even if Japan int. rates go up another 500%. This whole carry trade fear non-sense is just that. It willtake anotehr five years minimum or however long it takes for teh Japanese int. rates to get to 3%. In case you have not studied history in the past 100 years, if you are not leveraged in some form with your assets you will never get anywhere and alyways be behind. This is unfortunatly the game that finances the world. Point is also proven by home mortgages. How many people do you know now or in the last 30 years that have bought a house for cash? Go look at a Andex chart. Nothing to even debate here. Take the shades off dude. You need to see the light of how the worlds financial markets and inflation have worked since inception. Inflate or die. Trick for the the fed is to know about it but try and trick the little guy that thre is none. Then Joe wakes up one day and everything is a lot more expensive. If you have investable assets then you should be ok if you leave them there for twenty years. Again, history has proven this. The Dow Jones index from inception to now can help you with any of your questions. Proof is in the pudding. This is a psychological game..nothing more or less.

To: shades who wrote (83539)	7/13/2007 1:53:48 AM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

Followers of Puplava got buried in many junior miners. Many leveraged in overpriced RE getting hammered too. Timing is critical in proper entry point into assets at reasonable valuations as inflation hedges. You can be 4.5 years too early calling a housing bubble top and get smoked there too.. Tough world out there. Over time your dollar gets smoked too. Funny on CNBC the talk today was no one wants to hold cash anymore. Yet talk to paycheck to paycheck folks in this country today and still the same mantra is they wish they had a ton of cash in the bank.