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


To: yard_man who wrote (13794)5/13/2004 12:48:52 PM
From: gregor_us  Read Replies (2) | Respond to of 110194
 
The Deflation Monster Rears its Head.

USD Index at 92.20 and the rout in the Ten Year Bond continues.

Short term everything has gone way too far, the TNX...and the USD.

But I think what's about to be proven is this: all it took was the threat of higher interest rates to lift the curtain on the Deflation Monster. The ugly beast is breathing fire (actually, "ice" would be the proper word.)

If the aggregate debt of the USA were not of such historic proportions, maybe we could get a sustained Inflation.

No savings.
No wage growth.

Inflation?

An inflation panic, at best.



To: yard_man who wrote (13794)5/13/2004 1:03:10 PM
From: Grandk  Read Replies (2) | Respond to of 110194
 
Wow, that is a very astute assessment. Definitely something to consider. You are obviously long bonds then, no?