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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 (84023)7/22/2007 8:37:41 AM
From: Real Man  Read Replies (1) | Respond to of 110194
 
Liquidity = credit right now, so lots of money is an illusion.
Like that big limit credit card, get it and go spending, just
don't look into that mailbox when the bill comes due.
Bernanke said 100 bln. will evaporate in subprime mess.
Did he print $100 bln. in the past 3 years? No. I think money
evaporation rate is now greater than printing rate, so while
the gold bugs are talking about record printing, it is simply
not there. We can assume it will appear, but so far it is
nowhere to be seen. If foreigners pull our credit line, the
game ends. Well, that game sure found a way to extend itself
over time, but the housing ATM is off now. What next? Stock
ATM? J6P is not in stocks, and has no money cause his house
just foreclosed, running away from the Repo Man. Who's gonna
drive the consumption?

The money ain't leaving an asset to go to another one, it
has started to evaporate.