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


To: Ramsey Su who wrote (27760)3/3/2005 10:28:35 PM
From: mishedlo  Read Replies (2) | Respond to of 110194
 
It does to me but it won't to Russ.
Furthermore I still insist there is pent up domestic demand for treasuries.

Mish



To: Ramsey Su who wrote (27760)3/4/2005 1:43:10 AM
From: Colin H  Respond to of 110194
 
If the US economy enters recession I suspect the Asian CB's will see smaller and smaller piles of US dollars coming in. Then they won't have to concern themselves about what to do with all those dollars. They certainly won't be purchasing as many US securities. Also, maybe, they'll start to see the world in more of a Grossian way and try to take that first chair, to help out their depressed economies.

I don't see push coming to shove until we reduce our spending, as consumers. What would bring that about I have no idea. Maybe increases in gas prices combined with higher rates on the mortgage? A currency crisis that reduces our purchasing power, who knows? But certainly the great charade is alive and well, although, I do believe they are getting a little worried about our ability to keep it going.