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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 (37880)	8/5/2005 1:17:04 PM
From: GST	Read Replies (2) \| Respond to of 110194

<But in the debt-ridden US, a declining economy will cause an unprecedented real estate implosion for starters, which logically would cause interest rates to rise as defaults soared and the mood of Americans changed from fearless to fearful.> What is your assessment of this part of the logic chain?

To: russwinter who wrote (37880)	8/5/2005 1:24:40 PM
From: philv	Read Replies (2) \| Respond to of 110194

From that BDI article: "But in the debt-ridden US, a declining economy will cause an unprecedented real estate implosion for starters, which logically would cause interest rates to rise as defaults soared and the mood of Americans changed from fearless to fearful." I can't understand why interest rates would rise on defaults. Any thoughts?

To: russwinter who wrote (37880)	8/5/2005 1:24:50 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

But in the debt-ridden US, a declining economy will cause an unprecedented real estate implosion for starters, which logically would cause interest rates to rise as defaults soared and the mood of Americans changed from fearless to fearful. I believe that opinion is laughable and it seems you agree... a flight to safety trade being set up