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

To: Canuck Dave who wrote (33426)	5/28/2005 12:45:07 AM
From: mishedlo	Respond to of 110194

Debt repudiation is going to be in the cards. Eventually. Then, we'll see how much foreigners will charge for the risk of loaning to Americans. I still have not figured out the ultimate endgame but I am positive debt repudiation (deflation) comes first Mish

To: Canuck Dave who wrote (33426)	5/28/2005 6:18:28 AM
From: Square_Dealings	Read Replies (1) \| Respond to of 110194

yields have dropped as the stock market has gone up seemingly against the laws of financial physics so it certainly seems possible that if the process reverses, interest rates go up while the stock market goes down i think credit risk/defaults will drive yields much higher as well as a flood of new issuance by the government isnt this the perfect storm scenario? housing bubble burst w/ simultaneous rising interest rates and falling stock market m