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

To: mishedlo who wrote (7615)	2/10/2004 10:13:36 PM
From: CalculatedRisk	Read Replies (2) \| Respond to of 110194

I paid $2.04 per gallon gas tonight! Ouch.

To: mishedlo who wrote (7615)	2/10/2004 10:23:32 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 110194

Pimco's Gross stands in higher rate camp economic slowdown with higher rates I label it "MASSIVE STAGFLATION" just like in 1970's only much much bigger that decade had a cost-push-based price inflation China was absent, which Gross omits mentioning their involvement only delays the price inflation arrival it will come via the back door via imports, but it will come in the meantime, we will see the stagnation first financialsense.com (time dated, will be overwritten next Monday) Higher Interest Rates The bond and currency markets are waking up to the fact that they have been fooled. A downward adjustment in the exchange rate of the dollar is the next big crisis that will shake the financial markets this year. Already, Pimco’s Bill Gross the manager of the world’s largest fixed income fund has indicated he may no longer be as accommodating. In his recent Investment Outlook “The Last Vigilante” states: ”My point is that at some point on this seeming never ending ascent of debt/GDP, someone will say “no mas”. Maybe it’ll be Pimco and Pimco think-alikes; maybe it’ll be foreign holders of bonds grown tired of currency/inflationary erosion of principal; maybe it’ll be risk takers in high yield/ emerging market/ levered hedge funds scared to death from a future LTCM crisis. Hard to tell, but I’m telling you it’ll will happen, helicopter or no helicopter and with it will come an economic slowdown/recession unseen since at least the early 1980s when Volcker began his vigil. High Noon”. [1] In addition to shortening maturities anticipating higher interest rates, Pimco has also started a commodity fund. Want to know where the next bubble is surfacing, look seriously at “things” or commodities. The bubble has only begun to inflate in what looks like a decade-long or longer bull market. / jim