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

To: glenn_a who wrote (91245)	2/5/2008 12:29:00 AM
From: GST	Respond to of 110194

The housing bubble will send federal deficits to the moon as Washington and the Fed team up to try to shock "the economy" back to life while federal and state tax receipts plummet and spending soars. What they will do is pump up inflation -- the shock will be the fall of the dollar and the awe will be how far it falls. Unless you think they will be successful at "stimulating" the economy, then you should expect a weakening dollar -- and that breeds higher prices. What the Fed and Washington are stimulating is inflation -- and you should not expect them to change their stripes now.

To: glenn_a who wrote (91245)	2/5/2008 1:09:48 AM
From: GST	Read Replies (3) \| Respond to of 110194

Thought you might find this interesting: news.yahoo.com Imagine what we would think if there were 800,000 people stranded and standing outside in the cold for a week with their children and families at a train station in the US, and imagine what it would be like for tens of millions of people to go without electricity for over ten days in the dead of winter. It is so hard to grasp what is going on outside the USA -- it is like looking at the world by peering down the narrow tube of a straw -- we see little tiny snippets of their reality but most of it is just beyond our imagination. What I see is hundreds of millions of people hungry for a "richer" diet, expanded infrastructure and more fuel to consume. If my house turns out to be a turkey of an investment, they will not change their aspirations for a better life for themselves -- and that means vastly increasing their consumption.