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

To: TobagoJack who wrote (29911)4/2/2005 10:05:13 PM
From: mishedlo  Respond to of 110194
 
on the other side, bubbles pop when they get to big to support
Exactly. The bubble would have popped at 1% if left there long enough.

High interest rates might help pop a bubble but they are NOT a requirement.

The NaZ bubble popped substantially lower than the 8% that "supposedly" popped the Japan bubble.

Mish



To: TobagoJack who wrote (29911)4/2/2005 11:00:28 PM
From: Crimson Ghost  Read Replies (2) | Respond to of 110194
 
All the major bubbles -- -- the US in 1929, 1987 and 2000, plus Japan in 1989 were popped by high and rising rates.

it will not be any different this time IMHO, although I will admit that great leverage does reduce the rate needed for the pop. Still a zero percent real fed funds and 1.75%% real TNX are not going to cut it. Not by a long shot.


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