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


To: mishedlo who wrote (30855)5/26/2005 4:27:56 PM
From: Tommaso  Read Replies (1) | Respond to of 116555
 
Practice safe economics. Wear a conundrum.



To: mishedlo who wrote (30855)5/26/2005 4:41:47 PM
From: ild  Read Replies (1) | Respond to of 116555
 
Saved
idorfman.com



To: mishedlo who wrote (30855)5/26/2005 5:21:02 PM
From: rich evans  Respond to of 116555
 
As an older fellow said to me once: What is the alternative?. Learn to live with the law of diminishing enjoyment.

In a global economic system, one IMO has to look at what the alternatives are. Obviously "They" are making the choice that US treasuries are the best alternative.
And in some economics book , I read that that interest rates are controlled by inflation expectations.(The longer ones not the ones the Fed controls.) If so, could it be that worldwide investors are expecting inflation to be low or even deflation as you have suggested many times.
So conundrum is solved. You don;t need it anymore to be safe.
(g)
Rich



To: mishedlo who wrote (30855)5/27/2005 8:59:26 AM
From: Knighty Tin  Respond to of 116555
 
Well, at least if yields are in a conundrum, they won't get Aids.



To: mishedlo who wrote (30855)5/27/2005 10:50:32 AM
From: Crimson Ghost  Respond to of 116555
 
My take is that this drop in bond yields is the key factor supporting the stock rally.

And if they fall further, stocks probably will rally further.

Unlike Japan lower bond yields here still support asset prices, consumer spending, and economic activity in general.

Nowhere near a liquidity trap yet.