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To: John Vosilla who wrote (34573)6/28/2005 1:07:39 PM
From: The WharfRespond to of 306849
 
Doesn't seem the credit risk of the US consumer or risk of further debasing the US currency in the face of these twin deficits is reflected in the interest rates holders of the debt are getting.

Yes too true but it appears it is world wide case of back scratching and the only risk is too governments.



To: John Vosilla who wrote (34573)6/29/2005 5:25:26 AM
From: get shortyRead Replies (1) | Respond to of 306849
 
Low cost of capital keeps inflation lower and raises asset prices by expanding multiples to cash flow.

Is this not exactly contrary to our practiced monetary policy? Inflation is contained by increasing the cost of capital (interest rates), not lowering it. Am I misunderstanding you?