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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: mishedlo who wrote (567)2/24/2004 10:42:30 PM
From: excardog  Read Replies (1) of 116555
 
Cliping your quote here..<< FNM has bet rates go higher. They need to do this in case rates go up. If they do not then FNM would be content with what they get, except they are WRONG >>

Yet what if they are right and my point is they might have to be right. There may not be any other choice for the fed. Raising short term rates in order to keep from sinking the gse ships could be the only true option.

As I was once on the lowering side and not too long ago I understand your assumptions. My opinion has changed with the notion that there is just too much riding on the gse's backs now. A sudden melt down is in no one's best interest.

Thanks for the efforts you put in here.

Scott
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