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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (7988)	6/17/2004 4:38:26 PM
From: patron_anejo_por_favor	Respond to of 116555

Excellent read. This sentence crystallizes my main thesis for the growth failure I expect to see beginning Q4'03: Given the overhang of debt that was never worked off in the past recession, and the unfortunate fact that much of this debt is now tied to short-term floating interest rates (see Freight Trains and Steep Curves), higher interest rates and inflation in the near term could very well contribute to defaults and credit instability over the longer term. Disclosure: SHORT shares of ACF, F, CFC and MBI, all because of the above.