Richebacher's comments

[Peter K.]

>> non-financial credit had expanded by a little more than $1 trillion.
After a rise to $1.4 trillion in 1997,
>> credit flows abruptly swelled to more than $2.1 trillion in 1998 and
further to $2.25 trillion in 1999. In
>> comparison to GDP growth of $459 billion in 1998 and of $500 in 1999,
credit creation has been
>> truly running amuck.
>should shock Austrians, Keynesians, Marxists and Physiocrats alike. It
>truly does look like a gigantic Ponzi scheme, where a larger amount of
>debt must be created every year both to  roll over existing debt and to
>service it.
>
>Enrique

Last night I caught an episode of Errol Morris's First Person on the Bravo
cable channel which featured a lawyer who fights banks on behalf of those
deep in credit card debt. This guy said last year banks sent out 3.1 billion
solicitations and made $60 billion in interest, over-the-limit fees and late
charges - none of which goes to pay off principal - which makes consumer
credit the most profitable industry - according to this lawyer.

Rent the video "Fight Club" folks, you too Yoshie. Good luck with your
protest.

Peter
PS - I'm taking a brief break. Read you all/write you again in late May,
maybe sooner.