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

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To: Crimson Ghost who wrote (6358)1/28/2004 6:29:07 PM
From: yard_man  Read Replies (1) of 110194
 
one day of greenie's jawboning and you get sooo ecstatic -- golly.

Betting on higher rates as you continue to talk about, is really a belief that the housing market can be sustained at current price levels with higher rates -- it cannot -- should rates rise considerably -- housing would be crushed -- with it the feedback to spending and economic activity in general -- then rates would naturally go back down -- reflecting the fact that a dollar tomorrow will buy more than it does today.

So many try to compare today's interest rate cycles with prior periods, when the economy was "overheating." It's just the wrong model for the time. that's all you can say. This is NOT the 70's
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