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


To: Elroy Jetson who wrote (104717)8/29/2009 10:04:59 PM
From: Gib Bogle  Read Replies (2) | Respond to of 110194
 
If you are right, Elroy, the US will not see high inflation - assuming the American economy remains under the control of wealthy people. Another power centre that can influence the economy is the Chinese government. Presumably their interests are aligned with those of the US wealthy, as far as inflation is concerned.

Clearly we are in a period of deflation where real estate is concerned. What about other assets and goods?



To: Elroy Jetson who wrote (104717)9/1/2009 8:47:37 AM
From: Wyätt Gwyön3 Recommendations  Read Replies (1) | Respond to of 110194
 
Fed and U.S. Treasury are lending and spending new money into the system at a slightly slower rate than it is being destroyed

maybe the aggregates look that way, but in practice the Fed and Treasury are repairing bank balance sheets and the banks are not releveraging. this means there is much less credit available, to, e.g., RE developers and consumers.

ergo, a big de facto credit contraction and a bad recession, perhaps depr*ssion.