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

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To: Mike Johnston who wrote (66816)7/25/2006 1:24:49 PM
From: John Vosilla  Read Replies (2) of 110194
 
Yet with real inflation closer to double digits the long term treasuries remain near 5% and the yield curve inverted. All this should be bad for financials long term no matter what the end game. Yes never underestimate the fed's ability to create liquidity and quickly drop fed funds. Perhaps it works and we only get away with having a stagflationary recession and coastal housing crash. Best they can hope for is by late 2007 yield curve steeps dramatically and long term treasuries remain under 6%.
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