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

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To: Ramsey Su who wrote (23577)12/18/2004 4:43:17 PM
From: mishedlo  Read Replies (1) of 110194
 
"WE ARE SELLING US TREASURIES AND WE AIN'T BUYING NO MORE", and just sit back and watch the bond market crash?

Please be serious.
China has no vested interest right now, to crash the US economy. If you think there is such a reason please post it.
Massive dumping of US treasuries would do just that. I do not think one can massively and discretely dump treasuries either.

China might slow up on purchases, however, and probably is doing just that.

IMO if the US stock market starts to crash, there will likely be a MAMMOTH flight to quality right here in the US to more than make up for what China and Japan stop buying. I have been saying this all year but no one takes it seriously until someone says it in Barrons.

Finally, Europe would scream bloody murder about a rising Euro and might step in to buy anything China sells.

I am not saying a massive selling of treasuries by foreign CBs can not happen, I am saying that given the cross problems and concerns that it seems to be very unlikely at this time.

Mish
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