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

To: Lazarus_Long who wrote (86747)	9/21/2007 6:33:50 PM
From: John Vosilla	Read Replies (3) \| Respond to of 110194

'We've been building to this for a long time, since the '60s, under both Democratic and Republican administrations and Congresses' What about 1995-99 when the stock market went up eight fold adjusted in dollars, our currency went up 50% and we had the only fiscal discipline in the past 40 years? Today even with the incredible run in the DOW off the spring 2003 bottom, when adjusted for the drop in the dollar during the recent regime the DOW is equivalent to only 8500. Perhaps we had smart people back then who actually thought deficits do matter and being fiscally responsible was job one.. I say bring back Bill, Newt and Robert <g> Amazing there is so little talk today about how much our global economic boom is being held together by such artificially low long term rates here in the states given our grave fiscal situation.. We are going to have to debase, reflate and destroy our currency to get out of this mess and given how much the US consumer still dominates the world scene all fiscally responsible countries will be forced to join the party to protect the clownbuck in a 'mutual global debasement party' by monetizing their back end as many on this board these days point out..

To: Lazarus_Long who wrote (86747)	9/22/2007 11:17:52 AM
From: Jim McMannis	Read Replies (2) \| Respond to of 110194

"We've been building to this for a long time, since the '60s, under both Democratic and Republican administrations and Congresses. We've become spoiled brats, unwilling to swallow necessary but bitter medicine. Now we shall get it anyway" Yes indeed. Since most on SI aren't old enough to see that or too political... they tend to concentrate on just the last 7 years. "The funniest part is that the Fed ultimately will achieve the exact opposite of what they wanted. They lowered interest rates? Inflation shall follow as night follows day and, because of that inflation, higher interest rates. So the Fed won't sell a bond yielding higher than 4.75%? Then no one will buy them when inflation is 40%." right again.