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


To: FreedomForAll who wrote (10804)3/24/2004 11:46:15 AM
From: Jim Willie CB  Respond to of 110194
 
the only force which will raise rates will be Asians
when they have had enough
when they tire of USEcon credit subsidies
when they refuse to continue vendor financing on a grand scale
when they feel more currency risk damage to bank reserves
when they are urged to respond to TRADE WAR

the leveraged bond speculation apparatus is 3x larger than in 1994
remember the shock in long rates back then?
from 3.5% to 8% in one year

Greenie presided over that bond crisis
this time, I believe he will attempt to avoid that altogether
even if it means we as a nation march into the Liquidity Trap
just like Japan did

the two major symptoms of Japan's mess were:
1. real estate 50% decline
2. decimation of the bank industry

/ jim