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

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To: Lazarus_Long who wrote (86747)9/22/2007 11:17:52 AM
From: Jim McMannis  Read Replies (2) of 110194
 
"We've been building to this for a long time, since the '60s, under both Democratic and Republican administrations and Congresses. We've become spoiled brats, unwilling to swallow necessary but bitter medicine. Now we shall get it anyway"

Yes indeed. Since most on SI aren't old enough to see that or too political... they tend to concentrate on just the last 7 years.

"The funniest part is that the Fed ultimately will achieve the exact opposite of what they wanted. They lowered interest rates? Inflation shall follow as night follows day and, because of that inflation, higher interest rates. So the Fed won't sell a bond yielding higher than 4.75%? Then no one will buy them when inflation is 40%."

right again.
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