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

To: russwinter who wrote (33912)	6/5/2005 9:03:58 AM
From: Square_Dealings	Read Replies (1) \| Respond to of 110194

One things for sure the Chinese are not busy pumping up their stock market finance.yahoo.com these are five year lows m

To: russwinter who wrote (33912)	6/5/2005 9:17:40 AM
From: Crimson Ghost	Read Replies (3) \| Respond to of 110194

Good post from Pru Bear rebutting deflationist propaganda: gjohnsit NEW 6/4/2005 10:50:12 PM "Bonds are screaming low inflation and a flight to quality while the masses are betting on price." I keep pointing this out, but the deflationists just don't want to recognize that this traditional interpretation doesn't apply here: THERE IS NOT FLIGHT TO QUALITY! Yes, treasury yields are amazingly low. But so are junk and emerging market bonds. If there was a flight to quality then the spread between junk bonds and treasuries would be rising dramatically. Instead, GM and F can have hundreds of billions of dollars of bonds get downgraded into junk and still borrow more without breaking a sweat. Now, so the nose-bleed seats can here me - There is no fear in the bond market! The spreads prove that beyond a shadow of a doubt. End of story. Therefore the bond market is not forecasting a recession, otherwise there would be a flight to quality. Now that doesn't mean there there won't be a recession soon. There is a real chance of that. I'm just saying that there is another reason why yields are so low. What is that reason? Massive global liquidity. This isn't just an American thing going on here. That is why so many deflationists are reading the tea leaves wrong. That why deflationists were mocking me when I started investing in energy stocks in 2003 and continued to mock me even after my energy investments doubled. I expect to continue to be mocked even as my investments continue to grow. Pretcher has proven that a die-hard deflationists simply won't admit being wrong no matter how much money is lost.