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


To: GST who wrote (54067)2/17/2006 11:07:46 AM
From: orkrious  Read Replies (2) | Respond to of 110194
 
good points



To: GST who wrote (54067)2/17/2006 11:40:33 AM
From: Paul Kern  Read Replies (1) | Respond to of 110194
 
Bonds will tank when there is economic weakness, not when there is economic strength.

GST,

You have it backwards. When there is economic weakness, investors head for safety and bonds go up. Returns -- that's interest rates -- go down.



To: GST who wrote (54067)2/18/2006 2:15:14 AM
From: John Vosilla  Read Replies (2) | Respond to of 110194
 
"Dependence on foreign borrowing has turned the world upside down. The threat to bonds comes from any sign that the recycling game is at an end and that the debt expansion cannot be financed. Insane as it might seem, bonds now fear a slowing economy more than they fear an overheated economy."

The deflation guys seem to hate you for laying out the scenario that probably makes the most sense. Folks thinking cash will be king will have their world turned upside down..