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

To: Crimson Ghost who wrote (23053)	2/7/2005 2:49:04 PM
From: John Vosilla	Respond to of 116555

I agree that inflation and interest rates will not climb nearly as high as during the 1970s. Today's much more leveraged and globalized economy virtually guarantees that. But rise they will before this bubble bursts IMHO You are probably right but I wrestle with the soon to be flat yield curve indicating the next downturn. As this recovery was housing and banking lead for the most part should they too have to come down in order to have a deep recession? Could tight money and credit in a 5.5% 30 year fixed rate environment take down housing and the banks a thesis Mish would probably accept?