[soko]

I know it sounds like a doom and gloom idea but it appears that cash has become king in the market once again. There is SO MUCH DEBT out there. More debt than most people can imagine. Can somebody prove me wrong? Can somebody please tell me why overwhelming and unmanageable debt can somehow lead to economic growth in the long term? Well I CAN NOT. And because I see this debt monster to keep growing, the only natural thing to develop in the coming months is that people will do ANYTHING for cash. What happens when people DEMAND cash? Well you're able to charge them higher interest rates or else they face default.

Look at countrywide. Offering the best rates in the United States on 1-year CDs. I don't think it's a fluke. I think it's a signal for the direction that the market is heading. You either LOSE EVERYTHING or you accept the fact that you're going to have to pay out a high interest rate to survive in this market.

Cash is becoming king we have lived with so much dollar inflation in the past decade and more, I have the gut feeling that these things work in cycles and eventually we will have to STOP INFLATION and thus... interest rates will go up.