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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: tyc:> who wrote (8081)8/9/2007 1:03:45 AM
From: John Pitera  Read Replies (1) | Respond to of 33421
 
Sure Japan after the top at the end of 1989. We had a very severe global recession/ quasi depression in 1973-1974 into 1975 and lingering for several years into the cusp of the 80's.

It's very Significant to consider how much the downturns of the Global Market and Credit downturns since 1987 have been dealt with by the central banks by a vast expansion of the broader Money supply numbers and the monetary aggregetes.

The wholescale mass Credit Creation and the Price Appreciation we have seen in so many areas, Especially in the price and Valuation of Financial Assets, Appears to be at the onset of a break down that will be a once in a 2 Generation Event, in Terms of Financial Distress.

I predict that the lynchpin of CounterParty Risk and the fact that it can not be hedged against will develop as The Ultimate Weak Link in the Contractionary Forces inherent when less Leverage is pulled out of the Financial System.

John P