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

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To: bart13 who wrote (69986)	9/19/2006 10:48:13 PM
From: John McCarthy	Read Replies (1) of 110194

Hi bart I respect your time so I don't want to waste it .... (a) Show me a 40 or 50 year graph that just compares (1) actual (announced) inflation levels vs (2) long term interest rates ...... if they don't move in the SAME direction I am wrong ... I introduced the word "announced" because I was trying to get clarity from what Mike wrote ..... if the thinking is that we're gonna have an announced rate of 3% inflation and a real rate of 10% then I don't know how this will square with higher wage increases as discussed in Mike's post ... I'm not certain (and I could be wrong) that we can disconnect wage increases from announced inflation rates if I read you right (and I could be wrong) then you are suggesting that OTHERS have suggested the policy might be to let housing prices come down? if so - then why are we jumping thru all the hoops that Mike's post suggests .... jmo - but the structure of Mike's plan really could take the pressure off the time-bomb .... i.e. this driving of long term rates down-ward to let current holders re-finance - its sharp I'm just trying to ferret out how the fed would engineer this .... lets not forget - the fed cannot (jmo) sit on inflation rates forever .... Why don't you have the final post on this .... regards, John

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