John Pitera's Market Laboratory Message Board

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Strategies & Market Trends : John Pitera's Market Laboratory

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To: Hawkmoon who wrote (8677)	1/22/2008 7:11:15 AM
From: John Pitera	Read Replies (1) of 33421

Hi Hawk, I mentioned this on the Epic Credit Bubble Thread, in response to the comment of Bernake not caring about inflation.....and the TNX having such a low yield. An alternate way of looking at this: More evidence this morning that the bond market (probably reflecting Bernake's views) does not give a sh.t about inflation We have one of the most severe periods of global economic distress in the past 100 years and money is desperately flocking to asset classes perceived as providing shelter from the storm and retaining some purchasing value. US Gov. debt -- quality flight to safety. As Will Rodgers famously said, I'm not so much concerned about the return on my money as I am about the return OF MY MONEY. GLOBAL market are concerned. We're relatively fat and happy in the US as to a regime change that Nationalizes assets, changes the rules in the middle of the game, experiences a hyperinflation that busts a currency, or a pull back in Government to a totalitarian mode that confiscates assets. One caveat about times like now is to keep your powder dry wait for once in a generation liquidation market pricing to purchase assets for 20 or 30 % of intrinsic value. The other caveat is to make sure your gunpowder has not been absconded in the middle of the night before you can use it. John oh yes, one more little observation... changes the rules in the middle of the game ... Please look past our Governmental initiative to change the rules of the game in elements of the subprime and teaser rate mortgage reworks proposed by the Government by The Pres. a few months ago. Message 24221257 The other obvious reason for the TNX to be this low is the market is looking for a Hum Dinger of a Recession.... very likely the first Globally Synchronized Recession since 1973-1974. JP

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