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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 (36491)7/21/2005 4:33:04 PM
From: Wyätt Gwyön  Read Replies (1) | Respond to of 110194
 
Low treasury yields in the US, UK, Europe, and Japan.
Fear of inflation (where).


sounds just like 1966. sign me up for a bond bust of epic proportions.



To: mishedlo who wrote (36491)7/21/2005 4:39:40 PM
From: Wyätt Gwyön  Read Replies (1) | Respond to of 110194
 
Little pass thru on rising commodity costs.

ever heard of stagflation?

Cars have to be sold for a loss to get rid of them regardless of what Steel or copper or aluminum costs.


well, inventory has to be liquidated. inventory has a shelf life of a few months. BFD. do you think the top car makers are going to continue bleeding billions a quarter for years on end? i predict bankruptcies will happen before that.

If 1% interest rates could not bring about hyperinflation, one has to be nuts to think that rising interest rates is going to produce it.

you might want to reacquaint yourself with the trends of interest rates and inflation from the late 1960s through 1981. they both started low and ended high. the same arguments you are trying to make were made in 1966, but they didn't have the benefit of history as an excuse for their error.