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


To: studdog who wrote (100685)1/17/2009 2:05:27 AM
From: Skeeter Bug1 Recommendation  Respond to of 110194
 
SD, if you throw a ball up in the air, what happens? it falls.

if you blow up a massive bubble, what happens. it pops.

of course the prices of over priced crap has to fall.

that's the natural progression of things. if you don't want that to happen, to blow up bubbles.

simple, no?

yes, prices in the bubble assets will fall (housing, stocks). other items will also fall and wages will be pressured for a while.

however, that trend is under assault by a government that wants to create massive amounts of fiat money at the same time goods and service are becoming less available. circuit city is gone for example.

industry is consolidating and they will eventually exercise their near monopoly powers when given the chance. more dollars, fewer goods and less competition will eventual lead to inflation and a devalued dollar.

not tomorrow, but sooner than you probably realize.