Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: John Vosilla who wrote (41099)	9/8/2005 9:31:21 AM
From: russwinter	Read Replies (2) \| Respond to of 110194

It is odd the bond market rallies even with more stimulation, more deficits, higher costs of doing business and a possible pause in fed tightening. More credit and more spending keeps the ponzi scheme going? Several aspects are driving it: short covering from offside speculators betting on measured pace increases, FCBs have come to the rescue, probably their version of foreign aid, the Fed has been pumping liquidity and monetizing (price setting). I think we are dangerously close to another big round of inflation, combined with even higher twin deficits (maybe as much 12% of GDP, past Argentina like levels), amazing.

To: John Vosilla who wrote (41099)	9/8/2005 11:46:43 AM
From: Crimson Ghost	Respond to of 110194

Hard to imagine a big rise in US bond yields unless Japan yields climb sharply.

To: John Vosilla who wrote (41099)	9/8/2005 12:32:39 PM
From: Crusader	Read Replies (1) \| Respond to of 110194

Wait and see what happens on 9/11 during the Japanese election. I agree with Donald Coxe that the tide may indeed change if Koizumi wins. Ultimately, I see the US dollar being much weaker against these currencies over time. That will be inflationary for the US. The US dollar will be falling at the same time the Fed will be lowering rates to boost the economy which will also be weakening. Capital will flow back into Japan and other parts of the world. The US will be experiencing stagflation and their standard of living will drop with respect to Asia. Page 23 : corporate.bmo.com