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

To: Perspective who wrote (57369)	4/3/2006 11:04:09 PM
From: John Vosilla	Respond to of 110194

There is a reason our leaders in Washington spend like mad, have no fear in running up incredible deficits and also look the other way while illegals come into this country. Fear of that next leg down being deflationary. I think they would have easily succeeded if they'd stopped the housing bubble a year earlier. Now with these twin deficits out of control and too many consumers up to their eyeballs in debt the risk is a hard backup in rates at the long end causes economic chaos. The financial stocks sure don't seem to be discounting this possibility so perhaps the word is Bernake will force a recession and housing downturn to keep the rates at the long end low and dollar from weakening too much this next cycle.