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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Les H who wrote (172030)12/17/2008 2:02:58 PM
From: MulhollandDriveRead Replies (1) of 306849
 
If it was, treasuries would be selling off as money goes into equities and riskier assets.

why necessarily so, les?

front running ben has proven lucrative thus far, the buying in advance of ben driving the 10 year to 2%...so far china must have some excellent unrealized gains on the bonds they've been purchasing all along on the way to zirp.....however....at what point do those gains look too good to pass up and they start to sell? they've done this (buying our treasuries) in the first place to intentionally devalue their currency to the dollar so merkans will keep buying their junk, when the u.s. becomes japan and we stop buying or the dollar crashes?

the time will come when the chinese recognize that they cannot simply rely on the u.s. to keep their economic engine running, they're already talking about implementing huge infrastructure projects to offset the massive unemployment they could be facing....
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