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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: DD™ who wrote (7708)9/6/1998 6:12:00 PM
From: Skeeter Bug   of 42834
 
double d, let me in on your thought process. if japan dumps bonds then interest rates go up to attract buyers. how else does this impact the economy. it costs more to borrow for cap exes, but we already have excess capacity in front of what looks like falling demand.

as for asset deflation - you bet it is deflationary. a point or 2 will definitely put the clamps on real estate, bond and the stock market. these markets would go down (deflation), right?.

how would it increase the cost of gold, cars (push the price down, right? more interest then less for the car), groceries, education, etc?

one may suspect that increased costs of doing business would be passed to the customer but it appears nobody has any pricing ability due to near oversupply conditions.

again, let me know your thought process. i'm interested in a different viewpoint.
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