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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: carranza2 who wrote (48349)4/10/2009 2:34:04 AM
From: elmatador  Read Replies (1) | Respond to of 217865
 
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To: carranza2 who wrote (48349)4/10/2009 2:41:21 AM
From: elmatador  Respond to of 217865
 
"Thirty to forty years ago, the early fruits of financialization in this country - the first credit cards, retirement accounts , money market funds and ATM machines - struck most Americans as a convenience and boon."

ELMAT: Thirty forty years ago is 1972 when Nixon went out the Gold Standard.

"The savings and loan implosion and junk bonds of the 1980s switched on some yellow warning lights, and the tech bubble and market mania of the nineties flashed some red ones. But neither Wall Street nor Washington stopped or even slowed down."

ELMAT: The party of the late 80's -Yupppies, yellow ties, 'Greed is Good' and BWM ultimate driving machine add- all that was fianced by fleecing the indebted emerging markets.

This time around there is no emerging market to finance the digging out of the grave.,



To: carranza2 who wrote (48349)4/10/2009 2:49:06 AM
From: elmatador  Read Replies (1) | Respond to of 217865
 
"in 1960, parenthetically, manufacturing profits had been four times as big, and in 1980, twice as big." Hardly anyone was paying attention."

ELMAT: End of 60's the Bretton Woods model was exhausted. Reconstruction post-WWII had ended.
Brand new factories in Europe and Japan could compete with the US.

Facing with foreign competition, US economy turned from make of things to milk the USD as world reserve currency.

"finance, insurance and real estate (FIRE) sector overtook manufacturing during the 1990s, moving ahead in the national income and GDP charts by 1995.

ELMAT: IT is a miracle how stupid the rest of the world had accepted the status quo and let this run for over 30 to 40 years.