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


To: John Vosilla who wrote (88015)10/27/2007 11:53:27 AM
From: Jim McMannis  Read Replies (1) | Respond to of 110194
 
What happened to the deflationists? Housing is just starting to temper the inflation but so far is a minor factor. Check back in April '08 though.



To: John Vosilla who wrote (88015)10/27/2007 11:57:54 AM
From: Mike Johnston  Read Replies (2) | Respond to of 110194
 
The housing depression will actually cause massive increases in inflation as the Fed cranks up the printing presses to offset weakness in housing.

The plunge of the dollar even against world's secondary currencies is breathtaking.
The broad money supply is out of control, this is not a surprise with -6% interest rates.

Everybody is perplexed why oil is north of 90. The reason is only one, the world economy is being flooded with new money, the Fed is even conducting some covert operations here and other central banks print massive amounts of money to limit the speed of the dollar's collapse.

It is not the housing downturn and foreclosures that are going to cause the most pain. The major pain is coming as people's savings, real wages, pensions, annuities and insurance policies are being wiped out.

The government is engaging in desperate measures to keep the ship afloat : rigging the bond market, fraudulent statistics, money printing, outright fraud.