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To: Win-Lose-Draw who wrote (128092)1/15/2006 12:23:03 AM
From: mishedlo  Respond to of 209892
 
Not sure I understand: a bubble in junk would tend to put a cap on long-term rates, how does that work in favor of rising rates....?

PS Look forward to seeing your entry.


Hmmm your original post did not say "long term"
it said

For the sake of argument, lets assume inflation is not coming back over the next few years. What remains as an impetus for mj's significant increase in interest rates?

(That's an honest question, not a challenge.)


A bubble in junk bonds id fueling speculation in assets. The FED has all but admitted they are targeting asset prices and speculation.

They desperately want to shut off loose credit going into housing. I hope you agree that is clear. They are also discussing "asymetrical bubbles" I did not comment on that point in my blog but perhaps I should of.

Unusual for my blog I do offer 4 charts as well as an opinion on them. Lots of opinions. Perhaps too many?

What the heck. I will post it and you can comment on it if you care to.

Mish



To: Win-Lose-Draw who wrote (128092)1/15/2006 12:34:00 AM
From: mishedlo  Read Replies (3) | Respond to of 209892
 
Here you go.
I was not done think about this but it should be close enough.

Has the FED already overshot?
globaleconomcanalysis.blogspot.com
Mish