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

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To: CalculatedRisk who wrote (78954)2/14/2007 9:57:48 AM
From: John Vosilla   of 110194
 
It's much easier to clean up an even bigger mess these days as long as long term rates remain so low. People not only forget how high rates went back then but how much higher long term rates were even during the second Clinton Administration. 200 basis points drop from the high 6's on the 10 year treasury effectively stretches multiples to cash flow on competing various assets if all else remains the same from 15 to 22.. The government also can get away with deficit spending without ramifications short term..
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