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

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To: GST who wrote (37500)8/1/2005 1:21:32 PM
From: russwinter  Read Replies (2) of 110194
 
I would argue that a soft "boiling a happy frog" 2 by 4 is being delivered, which in fact is exactly the problem with the "measured" approach fiasco the Fed took. For instance, the 1 year CMT index is 3.80% (was 1.20 in March, 2004) after this morning. That adds up when speculators have to service payments on empty places, or decide to close on pre-construction option contracts. Now these crazies have some hard reality check thinking to do. So the Bubble ends as a combination of a soft 2 by 4, and boiling happy frogs. No surprise really, but apparently a surprise to those people out on high ledges.
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