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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: SouthFloridaGuy who wrote (93371)	1/25/2009 10:59:02 PM
From: Claude Cormier	3 Recommendations Respond to of 116555

- I'm sorry but why do you ignore the $50 trillion in private debt, possibly 1/2 which will be destroyed in the coming 10 years. What do you mean by destroyed? Paid of or defaulted on? -- Bank capital is being replenished for obvious reasons but it doesn't negate the fact that the capacity for banks to lend will be severely curtailed in the future and the desire of the populace to take on that debt will be as well. Inded that is the case for now. But if the economy is to work again, this will not last for long. The new money just created will join the current money already in the system with the traditional leverage -If Obama and the Fed can transfer that much debt into the public sector than at best you are at a standstill. Public sector or private... who cares that is the money that end up buying things. -People are already crowing about $1 trillion deficits when that won't be nearly enough. Deficits are not deflationary. More debts = more inflation