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

To: mishedlo who wrote (35083)	6/30/2005 2:19:22 PM
From: J_Locke	Read Replies (1) \| Respond to of 110194

The fed won't be issuing the rebate checks; it will be a co-ordinated effort between the fed and the administration/congress. I see the Democrats making major gains in the 2006 mid-terms and taking over both houses in 2008 as the economy gets worse and worse. Bush's approval rating will be in the teens when he leaves office. The Democrats won't stand idly by while the unemployment rate rises and people have their homes repossessed. They will take drastic measures and the fed will play along because financial intermediation will be impaired by the real estate bust. Another scenario would be a new Resolution Trust Corporation to buy non-performing real estate loans. The RTC would issue bonds to buy bad loans from the banks and the fed would buy the RTC bonds.