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

To: russwinter who wrote (61618)	5/22/2006 10:13:57 PM
From: mishedlo	Respond to of 110194

Great post Russ. I am away on vacation so a lot of what I do will be limited or I would try for a better response. Mish

To: russwinter who wrote (61618)	5/22/2006 10:55:31 PM
From: sammy™ -_-	Read Replies (1) \| Respond to of 110194

As for homeownership, you merely need to watch that famous Jimmy Stewart movie "It's a Wonderful Life." Who among us would disagree with George Bailey when he tells Mr. Potter that owning a house makes us all better citizens? But the good comes with the bad.

To: russwinter who wrote (61618)	5/22/2006 11:34:33 PM
From: basho	Respond to of 110194

I guess one possible explanation is that credit holdings may on balance be embedded in longer term, more structural books and so less subject to very short term speculative flows and fashions. They may also garner some short term support simply by virtue of being in the bond universe rather than the "things" universe. The larger question is of course whether what we're seeing is just another "pause that refreshes" or the long awaited shift in risk perceptions. If it's the latter, there's little doubt credit spreads will be slammed hard enough to please the most demanding bear before too long.