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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 (13680)	5/11/2004 9:51:40 PM
From: NOW	Respond to of 110194

the next part is key:"Is It Different This Time?...To suggest we're in a very rapidly changing global economic environment of the moment risks dramatic understatement. As we contemplate the domestic labor market and associated unit labor cost and wage movement, we need to ask ourselves whether "it's different this time" in terms of the historic relationship between labor costs and headline rates of inflation. For now, are bond market machinations really built on exploding inflation fears, or simply on the exploding fear of potentially exploding underlying investment leverage? We believe it's a key question in terms of assessing investment opportunities ahead. If real inflation is about to rocket higher, bonds could be entering a secular bear market. Alternatively, if the unwinding of unprecedented leverage is really driving action in bond land at the moment, at some point when this process is near completion, fixed income will be a buy. " Your thoughts?