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

To: Hawkmoon who wrote (108861)	6/26/2010 3:26:11 AM
From: clochard	2 Recommendations Read Replies (1) \| Respond to of 110194

Anything useful (well built houses, railroads, sewers, hospitals) is worthy of credit and therefore monetary expansion. Public spending for such things (not bloated public sector salaries and pensions) is necessary and adds value to the economy. Bonds issued by blue-chip companies are also accepted as valuable to everyone and also deserve part of the credit pie. Investors get their income and society keeps important projects going. Rich bond investors "subsidise" society by lowering borrowing costs. As long as credit is used for good things (not mortgage derivative CDO on shoddy overpriced McMansions or manned missions to Jupiter) it can expand without hurting anyone.