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

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To: GST who wrote (71186)10/6/2006 12:42:35 PM
From: John Vosilla  Read Replies (1) of 110194
 
'The area for debate is how bad will inflation be, not whether there will be deflation.'

Seems to be very little discussion on that here these days. All this is happening with long term rates 200-300 basis points lower than the average during the mid to late 1990's even though inflation is much higher than that period. Yet we have a housing slowing down, record extreme between wealth and poor, large financial institutions seem to be positioned as strong as ever, an inverted yield curve, corporate profits very strong and twin deficits still extreme. Something has to give..
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