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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 (61473)5/19/2006 2:56:50 PM
From: UncleBigs  Read Replies (2) | Respond to of 110194
 
30% is just for starters. I see no reason why prices won't return to 2001 levels which is a drop of about 60%.

What can stop that? Free money loans again.

A return to 1% fed funds with an aggressive global reflationary effort seems unlikely to me. We'll just have to watch it all play out but to me a 30% haircut is in the bag.

That will likely destroy consumer confidence and retail spending.