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Strategies & Market Trends : Classic TA Workplace

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To: Win-Lose-Draw who wrote (128089)1/14/2006 10:47:38 PM
From: mishedlo  Read Replies (1) of 209892
 
For the sake of argument, lets assume inflation is not coming back over the next few years. What remains as an impetus for mj's significant increase in interest rates?

(That's an honest question, not a challenge.)


A bubble in junk bonds.
Even the most speculative of companies are actually going to the junk bond market, raising cash for the sole purpose of buying back their own stock in an effort to raise share prices even more.

The amount of that is simply staggering.
Buybacks, leveraged buyouts, and other such nonsense is rampant.
Just like 2000 I might add.

I did a blog on this idea today but have not posted it yet.

Mish
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