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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Earlie who wrote (244979)6/11/2003 7:52:23 AM
From: Mike da bear  Read Replies (1) of 436258
 
Buy bonds too!

Thinking about bonds, I think the Fed will continue to jawbone or, if necessary, start buying bonds to keep interest rates declining.

The mortgage industry is one of the very few hiring people these days. If interest rates start to ratchet up then 90% of their business will dry up... resulting in massive layoffs. I wouldn't be surprised to see 500,000 layoffs over a 3 month period if the industry felt interest rates had bottomed and refi's would fall off a cliff.

mdb
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