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

To: mishedlo who wrote (25900)	2/5/2005 11:46:01 PM
From: orkrious	Respond to of 110194

Perhaps Heinz and I are the only two people in the world that believe this. you two, bob bronson, and stephanie pomboy <g>

To: mishedlo who wrote (25900)	2/6/2005 10:34:33 AM
From: russwinter	Read Replies (1) \| Respond to of 110194

<There will be a mad rush out of agencies and crap like that into treasuries if and when housing blows up.> I agree there will be an agency blow up and some initial flight into treasuries, although the term "treasuries" as you use it is too broad. There may be a rush into very short term T-bills, and a widening in the curve. However, if short term T-bill rates actually decline, then the demand for anything associated with the USD will decline (hyperinflation), and then the rush will turn into a rout of the USD (currency crisis), and a flucht in die sachwerte, or a rush into real goods people feel they can count on for money.