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

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To: Crimson Ghost who wrote (90465)1/15/2008 11:10:13 AM
From: Rarebird  Read Replies (4) of 110194
 
The yield on the 10 year bond is lower today than it was during the entire 2001 recession. This tells me that the bond market is either discounting Armageddon or it represents the last great bubble about to implode.

One thing is for sure: despite rumblings that the monetary policy of the Federal Reserve ultimately caused the current credit crisis, faith in the system still appears strong. How much longer this will continue is not easy to gauge. But we are in the last stage before risk is priced in, that is, higher yields.
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