SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: mishedlo who wrote (56570)3/22/2006 6:42:15 PM
From: patron_anejo_por_favor   of 110194
 
>>I think initially (as in now) homies are following 10 yr treasuries but just as gold disconneted with the US$, homies will disconnect from treasuries. In fact, I see a distinct liklihood that mortgage rates themselves disconnect from 10 year treasuries.<<

I think that's possible as long as the FCB's continue to agree to finance our deficits. In that scenario, long rates stay flat while the housing bubble deflates. If they decide to decrease (not necessarily start to sell their portfolio, mind you) long bond purchases though, rates will climb and the housing bubble will make a Hindenburg-style soft landing. Domestic investors just don't have the means or ends to take up the slack for the size deficits being run.....
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News