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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: Crimson Ghost who wrote (70123)9/22/2006 4:12:13 PM
From: Mike Johnston  Read Replies (1) of 110194
 
I think this bond rally is about giving messed up homeowners a chance to refinance into low fixed rates.

If i am correct then it has ways to go.

It is ironic that both bond bulls and bond bears will be wiped out. How ?

Bond bears will be wiped out when CB and Fed buying will push bond prices higher.

Bond bulls will be wiped out eventually because coupon is well below inflation rate and inflation will decimate the value of their principal.

Insane, but true !
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