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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: philv who wrote (2187)	11/15/2003 4:33:40 PM
From: Crimson Ghost	Respond to of 110194

The longer the Fed keeps short rates at 1%, the more it will have to ultimately raise them to prevent runaway inflation and a horrendous dollar collapse. A recession much worse than the last one now looks inevitable before long. The boys can probably postpone it till 2005, but the financial markets have a habit of discounting these things far in advance. There is no free lunch in economics. Ultra-easy monetary policy can only postpone the way of reckoning at the price of making it much worse than if the proper medicine had been applied earlier.

To: philv who wrote (2187)	11/15/2003 11:16:26 PM
From: J. P.	Read Replies (2) \| Respond to of 110194

Have we not reached a permanent plateau in home prices? Who's to say that the advent of derivative hedging hasn't created a higher residential home price level set due to leverage? I've been looking for a home price drop for some years now, but all I see is 20 percent and more increases, and really don't see any reason for it to falter. Loans are easy, FNM and FRE are made of teflon. They weathered the recent rapid increase in rates with flying colors.