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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: patron_anejo_por_favor who wrote (25532)12/1/2004 1:53:17 AM
From: Amy JRead Replies (1) of 306849
 
RE: "bank exposure to mortgage assets has increased from 10% of bank assets outstanding to over 60%...once this bubble pops...it...will..likely be good for treasury bonds - and bad for all other debt instruments."

Why would a defaulting US financial system be good for US treasury bonds?

Not that I believe it would happen, but if a US banking system failed, people would also question their confidence in the USA, including such things as US treasury bonds.

Regards,
Amy J
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