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

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To: UncleBigs who wrote (45027)11/8/2005 9:45:27 AM
From: russwinter  Read Replies (1) of 110194
 
That's because they get a non stop diet of moral hazard propaganda, about how easy money is on the way (Humpty Dumpty has been assured about all the King's horses and men), once they get into a little trouble. It's reinforced too, note today's big Pig Man bond rally. That's not flight to safety in my book, just rotating speculation. Notice how agency spreads narrow, not widen, despite the news on TOL, and the fact that even CFC's Morilio is suggesting difficulties:
rbsgc.com

We need to see a big market break, which will fuel severe loss of confidence, which in turn will feedback the other direction (revulsion).
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