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

To: russwinter who wrote (12081)	4/16/2004 3:10:35 PM
From: russwinter	Read Replies (2) \| Respond to of 110194

<FLOYD NORRIS: It's Time for an End to Super Low Interest Rates> This Norris article is from the NY Times so the elite media is picking up the "story".

To: russwinter who wrote (12081)	4/16/2004 7:49:15 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 110194

I vividly recall the painful process in 1994-1995 raising interest rates comes with much unwinding the biggest area of futures contract speculation is TBonds now in 2004, we have roughly 3x as much TBond open interest so expect any adjustment to be more painful I wonder if we get it at all if rising costs result in lost jobs, declining income, more debt default and bankruptcy, we will not see typical inflationary pressures we will continue to see the opposite damn, we are setting up Asian abandonment our future lies in Asian creditor hands I see Argentina-like foreign capital flight in the midst of Japanese-like liquidity trap closing the Fed would really love to see yet another round of housing price spurts and REFI's sad and tragic, but true this is how the Liquidity Trap closes right now, the Trap has plenty of liquidity in coming months, it might not the onliest way to avoid full closure of the Trap is to trigger a bond adjustment series of events, forcing rates higher I dont see that kind of intestinal fortitude not even close our Folk Hero Mr Magoo would be spitting in Wall Street Bankers faces not gonna happen we have monumental bond volatility upcoming / jim