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

To: Giordano Bruno who wrote (87685)	10/15/2007 11:43:27 AM
From: John Vosilla	Read Replies (2) \| Respond to of 110194

For J6P to cover his debt service he needs incomes rising at a nice clip. However that is bad for corporate profits, inflation and interest rates. Something is gonna have to give and since they are hell bent on avoiding deflation or serious recession it is gonna be the stagflation many here talk about with booms and busts ongoing within different sectors of our economy.. Unless we see a strong dollar policy and fiscal discipline on the horizon.. I bet the hope is get through this serious housing/credit crisis in the next couple of years and then worry about the deficits and dollar.. In 2-3 years it might be way too late. Long term interest rates I maintain as the huge wild card in all this.. Imagine what would happen if long term rates were to rise 300+ basis points within a year?