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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: T L Comiskey who wrote (28773)	9/25/2003 10:25:43 AM
From: Jim Willie CB	Respond to of 89467

misreading two major signals biz.yahoo.com 1. rising metal prices, and profits from their miners 2. shrinking junk bond spreads #1 indicates rising production costs this is part of the grand misread that any sign of inflation successfully offsets deflation what if prices rise on the cost side? what if prices fall on the final demand side? THAT IS PRECISELY WHAT IS HAPPENING again, the level of competence in our US economist community is utterly abysmal it is worse than just shitty, lousy, bad it is a collosal cesspool of competence #2 indicates temporary relief from the bond stress the Fed has temporarily succeeded in building some gigantic bond bubbles the Trez market has seen a worldwide shock wave already the GSE agencies have seen executive and balance sheet damage next is corporates and junks these are not positive signals they are rather topping signals THE FAULT LINE IN THE BIG BOND MARKET VULNERABILITY IS WITH MORTGAGE BONDS as the economy falters in the next several months, junk bonds will suffer bigtime damage, again and it will surprise clowns like Edward Allen / jim