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

To: sea_biscuit who wrote (90849)	1/27/2008 12:21:44 AM
From: glenn_a	Read Replies (1) \| Respond to of 110194

Thanks for your reply sea_biscuit. I think I understand your position better. If we were to consider separately prices of goods and services, and financial asset prices, including commodity stocks. Do you foresee a possible scenario whereby financial asset prices could collapse, even though prices of real goods and services remain stubornly high? Or do you see financial asset inflation as inevitable along with inflation in goods and services? Also, do you see any circumstance over say the next year that might lead to an different outcome than inflation for financial asset prices? For instance, if the European central banks hold firm on interest rates. Or Foreign Central Banks stop buying Agency paper or Fed debt? Or a deep global recession takes hold? Or worsening problems for the global credit system? Regards, Glenn

To: sea_biscuit who wrote (90849)	1/27/2008 10:42:16 AM
From: benwood	Read Replies (1) \| Respond to of 110194

I think it's important to have a good handle on the likely outcomes, but I disagree that gold and/or miners are a sure thing either way. I have a good chunk in pm stocks, yet when I look at the massively manipulated markets and the monstrous distortions created in the past few years and throw in 600+ trillion of derivatives that could see immense bursts of unwinding which leads to who knows what dominoes falling, I certainly don't sleep thinking anything is a given. I just assume with all the lying and chicanery on Wall Street that there are simply too many unknowns to make a slam dunk bet anywhere. Reckless gov'ts and reckless monetary policy have historically destroyed the vast majority of participants, sometimes nearly all of them.