Reply #8: Bitter medicine; better mgmt needed [View All]

[many a good man]

:* Absolutely right. China is a big consumer of our foreign debt so rates must rise to attract more buyers. Its a badly needed dose of medicine that will be bitter to the patient in the short term, but better in the long run. We're living in an enormous credit bubble and we don't want it to pop. It will strengthen the dollar moderately on world mkts.

:) You're right, I need to rethink this one. Prices of Chinese goods will rise against the Euro. It will help European mfg as much as here so let's call this one a draw.

;-)The world markets leap with joy at the faintest noises of responsiblity coming from Washington. There's always more opportunity to make money in the US mkt than in the slow and steady European mkt. With China putting on the brakes, investors will keep propping up the US equity mkts. Until we reach the point of no return. We've gotten ourselves into a terrible pickle, and we won't get out of it by following bad fiscal and monetary policy with worse...