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

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To: russwinter who wrote (6635)2/1/2004 9:12:38 AM
From: Crimson Ghost  Read Replies (1) of 110194
 
I don't know if you recall the 70s bond bear, but I do. Interest rates surged far beyond what even the most extreme bond bears anticipated at the beginning of the decade.

I expect a repeat over the next few years. Rates will not reach 1970s double digit only because of a lower starting point IMHO. But I would not be surprised by high single digit T-bond yields before we are done. Markets that are artificially held down have a way of swinging to the opposite extreme when the rubber band finally snaps.
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