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

To: basserdan who wrote (21894)	11/17/2004 1:20:30 AM
From: Kailash	Read Replies (1) \| Respond to of 110194

Great stuff. I'm impressed Summers is so clearheaded -- Greenspan is one big muddle in his public announcements. The "balance of financial terror" is a great concept -- except it's not a stable equilibrium, it's a dynamic, far-from-equilibrium system that could flip any time. I wonder if his G20 idea will be taken seriously. This is obviously the way to go. Cheers, Kailash

To: basserdan who wrote (21894)	11/17/2004 1:31:54 AM
From: mishedlo	Read Replies (3) \| Respond to of 110194

IMO US buyers will step to the plate if Japan stops buying. Hell Europe might step up to the plate first and buy the currency or bonds or whatever. Exactly what do you think would happen to Japanese trade if the YEN appreciated? Just who would they export to? These "what if" scenarios such as no one showing up are laughable IMO. If we have a stock panic or housing crash in the US, the very first thing I expect to happen is US investors stepping up to the plate and buying US treasuries in mass. The corporate bond bubble is far bigger than the treasury bubble IMO and once again, if corporates head south in a big way, I expect to see treasuries BOUGHT not sold. I have yet to see one person here talk about the bubble in junk bonds or corporates when the yield between junk and treasuries is insanely low. Message 20771813 Now, bondholders being bondholders, just where do you expect the yield chasing junk buyers to park their money when junk and corporates head south? I expect plenty of buyers for treasuries. Mish