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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: t2 who wrote (654)9/10/2003 7:08:24 AM
From: Mike da bear  Read Replies (1) of 110194
 
You say traders will bail out of bonds and put money into stocks. But for each bond sold someone has to buy it, therefore it's a zero-sum game. No aggregate new cash is raised by selling bonds. That would only happen if total bond debt outstanding were to start going down. Since debt is exploding, bond generation is increasing.

Therefore my contention is the opposite, money has to come out of stocks to buy the additional bonds coming into the market.
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