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


To: DebtBomb who wrote (88729)11/8/2007 12:54:52 PM
From: John Vosilla  Read Replies (4) | Respond to of 110194
 
So what is the magic bullet that tells me we are in a deflationary cycle? Certainly housing in ground zero areas near me are like a depression already yet oil and gold sniff at hyperinflation.. The US cuts interest rates while all our main trading partners are raising. Financials in freefall yet overall market averages worldwide are still quite lofty. Mixed signals everywhere. If financial institutions completely stop lending that would be the trigger to what deflationists allude to IMHO. But that ain't gonna happen even if Wash Mutual or Countrywide become insolvent. The clowns at the controls will only expand Fannie, Freddie and even more deficit spending... Pump it up. Iraq cost up to $3T the credit bailout of $1T is peanuts<g>



To: DebtBomb who wrote (88729)11/8/2007 12:59:42 PM
From: Tommaso  Read Replies (2) | Respond to of 110194
 
>>>Once the deflationary cycle kicks in, all of that stuff will plummet, IMO.<<<

Yes, when people stop eating.



To: DebtBomb who wrote (88729)11/9/2007 5:41:13 PM
From: GST  Read Replies (1) | Respond to of 110194
 
<But....soon, no bubbles left.... = Deflation> No, that is backwards. We buy foreign goods by selling our assets -- as our asset are wiped out, import prices go up.