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


To: bond_bubble who wrote (51396)1/25/2006 4:01:03 PM
From: GraceZ  Read Replies (3) | Respond to of 110194
 
I was lending for less because if I dont, then govt was going to print money and give it at a lower rate!!!

The money you lent at low rates ended up on the other side of RE buying. You have met the enemy and it is you.

Why didn't you use it to invest in some sort of productive enterprise?

BTW the primary RE lenders Fannie and Freddie are not government agencies, they are public companies. It was the demand for mortgage backed bonds which ballooned the amount of dollars available to borrow to buy RE. Low interest rates caused by a collapse in the demand for money for productive enterprises always boosts RE because lenders prefer the security of real assets in low interest rate environments.

So what if the Fed has fooled the bond market?

One should never base an investment decision on thinking that a large group of people, a whole market as is the case with the bond market, is somehow dumber than you are.



To: bond_bubble who wrote (51396)1/25/2006 4:13:59 PM
From: ahhaha  Read Replies (1) | Respond to of 110194
 
I was lending for less because if I dont, then govt was going to print money and give it at a lower rate!!!

Incoherent and non sequitur set of randomly chosen words.

I cant compete with govt!!!

You aren't in competition with government.

So not because it is low inflation - but I cant fight the Fed!!

FED does not set long bond rates. No one does.

And the bond market also has been fooled to thinking the CPI prices that excludes housing cost, investment cost (i.e future retirement cost) is what is important.

Here you are. A person who clearly knows nothing, stating that everyone else is fooled.

Fed has outright forced them to think inflation as:
1) Chinese wages 2)Computer speed 3)Quality that you seem to be espousing etc....


Incoherent gibberish. Normal for this thread.

So what if the Fed has fooled the bond market?

FED totally controls the short rate bond market and has no control whatsoever over the long term bond market.

So what if the Fed has forced me to lend lower?

Incomprehensible. Just a collection of words arbitrarily chosen and put in a sentence form.

As long as there are private enterprises also existing, there is free will right?

Goes beyond sophomoric to the lowest form of partially educated which is worse than totally uneducated.

You are a great admirer of this $1 cars, $1 hospital and -ve real interest rate!! Although you, as a consumer will not choose $1 cars as they might be risky but buy 20K car with nice quality etc!!!

Gibberish. Words not even put in proper order, thereby reaching a new low of stupidity.

What happens when there are no more private hospitals, private car companies as they die competing govt?

Evidence of dyslexia.

And what happens to my money in the bank if there is either (a) hyper inflation OR (b) deflation and bank defaults. Oooh ya, I know, I've the "freedom" to choose whichever bank I want to deposit in!!! And there are plenty of banks that transact in gold money around. Do you see them? Oooh, BTW, those Chinese making the $1 cars and the Indian doctors providing $1 hospital and law services - now might decide to charge more!! And US lawyers, auto workers have no jobs!!! Is the honey still flowing?

How could one use so many words to say absolutely nothing? Grade: F. Recommend remedial education in junior high!!!!



To: bond_bubble who wrote (51396)1/25/2006 5:19:59 PM
From: shades  Respond to of 110194
 
I see article popping up of gubbments at state local and other levels selling roads and infrastructure to private businesses.

Looks like maybe boeing can get some nice stable IBM big IRON too - hehe

=DJ Computer Problems Idle Boeing Workers In St. Louis >BA

.

ST. LOUIS (Dow Jones)--Workers at Boeing Co.'s (BA) defense headquarters in St. Louis were sent home Wednesday because computer problems interrupted production of military planes.

Several hundred workers were sent home from the first shift Wednesday morning, and the second shift was canceled, said Rick Smith, president of Local 837 of the International Association of Machinists and Aerospace Workers.

Non-production work, such as maintenance and security, continued at the plant, which makes fighter jets and cargo planes.

Boeing said it hoped to have the problems resolved in time for the third shift, which is to begin at 12:30 a.m. ET Thursday.

- By Greg Edwards, Dow Jones Newswires; 314-588-8443; greg.edwards@dowjones.com