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

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To: TobagoJack who wrote (15951)6/28/2004 7:10:43 PM
From: Jim Willie CB  Read Replies (1) of 110194
 
impact of higher rates will be both sudden and amplified
because it shows up immediately in home equity loans, in mastercards, and in vendor finance deals

also, the amplification comes from the extreme dependence in the financial markets AND the real economy

we had a violent bond revolt this spring WITHOUT any announced official Fed actions
imagine what happens when they do hike
the slowdown will be very quick
in 1999 we had several rate hikes, and got a stock bust, a telecom bond bust, and a recession
we are likely to see the same very soon, TIMES 3-4

on Monday report, I put together a comparison
"A WALK PAST 1994 MEMORY LANE" on Financial Sense
some nice graphs in a pictorial walk to expose key risks, which are much much greater than in 1994
these effect could have political impacts ultimately

financialsense.com

/ jim
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