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

To: UncleBigs who wrote (46490)	12/3/2005 1:06:43 AM
From: kailuabruddah	Read Replies (1) \| Respond to of 110194

But since there is little to no wage inflation - once that liquidity no longer flows into Real Estate, then what? Here's one Bubble Market that's in a full-fledged "slowdown" - which certainly may develop into an out-and-out collapse (right in the Fed's backyard no less!): virginiamls.com virginiamls.com virginiamls.com

To: UncleBigs who wrote (46490)	12/3/2005 12:58:28 PM
From: mishedlo	Read Replies (2) \| Respond to of 110194

Mish how do you know that the Fed isn't pegging long term treasuries through monetization right now? I'm not certain that long treasury yields are set by the market. I think there's a good chance the Fed is monetizing the long end and the resultant liquidity is bulging out in gold, commodities and the stock market. There does not seem to be any evidence that I can see that the FED is buying LT treasuries. Yes, I am aware that some people think that all off this treasury from from the bahamas or whatever is by the fed but I do not buy that story. Not that someone might not be telling lies but we have seen at least 5-6 members of the FED actually seem to be trying to "talk up" LT treasury yields. I believe but can not prove the reason for that is the FED does not want the yield curve to invert until they are done tightening or at least ready for a pause. Finally it seems that you are proposing some massive conspiracy that half the FED is in on, along with some hedge funds in the bahamas or wherever instead of believing a simple story that we are on the verge of some sort of debt collapse lead by housing. Now which do you think is more likely? Mish