The Epic American Credit and Bond Bubble Laboratory Message Board

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

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To: Broward Horne who wrote (80311)	3/27/2007 6:13:12 AM
From: Dan3	Read Replies (2) of 110194

Re: The Feds are going to do a bond burnoff. That's essentially what they did in 1994-1995 to rebound the economy. The sharp reversal in interest rates shifted over $1 trillion from savers to borrowers. This time they'll do a burnoff in mortgages, running an inflation rate that exceeds the lowest mortgage rates. I'm thinking we need a shift of $4 to $5 trillion to regain short-term balance. There's a chunk of pensioners who are going to get shafted. I tend to agree, except, wouldn't that crash the dollar and cause inflation to jump?

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