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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: orkrious who wrote (71369)2/3/2007 7:21:14 PM
From: SouthFloridaGuyRead Replies (2) of 306849
 
<<<At the first sign of weakness in the general economy, I expect Bernanke to start chopping fed funds by 50 to 75 basis points at a time>>>

That's the first thing on which we solidly agree. <g>

When they cut, the long bond is gonna get smoked, and I don't think that's going to be good for the stock market, especially homies. Regarding the stock market, it will be just like from 2000-2002 when they were furiously cutting and the market kept going down. This time, though, it will be worse because inflation is raging and the long bond won't like it.

None of what you have said makes sense, in fact it's a complete contradiction. You think Economic growth will slow, the Fed will cut, inflation will rise and the long bond will crash?

I'm not trying to be arrogant or a dick or whatever, but it doesn't make sense. If economic growth slows, the long bond will rally and the deflationists will be proven right. It's that simple. Even ask Misheldo on this one.
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