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Strategies & Market Trends : John Pitera's Market Laboratory

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To: Jorj X Mckie who wrote (10846)12/8/2008 12:40:40 AM
From: John Pitera  Read Replies (1) of 33421
 
Hi Tom,

I am positive that the FED has been doing Quatatative easing; and a portion of that has been buying USD 2 year 4 5 10 and 20 year debt to push the pices so low that. Institsitutinal Invetors, Pension Funds other major global players can not get a decent return in the "Govies" thus they move their assets out to GSE's Fannie and Freddie, and start to work their way our to perceived higher riks bond asset clases.

GE: even if it's a AAA rated 10 year note that is yield 7.20%
all things are possible as long as your reserve currency is strong.

This unprecedented flight to quality in the USD shall most likely not appear appear again in the coming 100 years.

(JP out on the ledge)

John

Them of the day is that we have already hit the asset crash botom --- indeed the liquidity bottom; as their are so many ways to safely argitrage these mareket forward priceing/.

JP
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