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

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To: russwinter who wrote (24961)1/19/2005 1:19:07 PM
From: John Vosilla  Read Replies (1) of 110194
 
<We are in the eighth inning, and another 25 bps increase in the "set to" LIBOR and CMT rates (links to this are now in lab tools above) will be the ninth inning tipping point to a Bust. The only question is can they call the game because of rain, and somehow resurrect believable lower rates.>

Calling the game because of rain....lol I like that. And if it is the last game of the season we have a long wait till next year. Look they can attempt to tighten some more, weaken the economy somewhat, create a soft recession without blowing up housing and backing up long rates yet. I do believe as I think you do the biggest risk is when the liquidity for long term treasuries dries up even in a weakening economy.
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