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


To: Rarebird who wrote (65770)7/10/2006 11:26:50 PM
From: John Vosilla  Read Replies (1) | Respond to of 110194
 
'Simultaneously, lower yields reinforce inflation, since low real rates encourage investment in real assets such as commodities.'

Guy on the radio today was talking about higher rates also being inflationary due to higher costs of capital that need to be passed through by the business incurring the added cost. You both are right to some degree so persistently higher asset values (that plateau after being artificially juiced upward in a steep yield curve) coupled with a persistent rise in cost of capital is the most inflationary of all over time..



To: Rarebird who wrote (65770)7/11/2006 12:57:10 AM
From: Gib Bogle  Read Replies (1) | Respond to of 110194
 
"The Bear is like an exotic dancer who likes to woo its followers into thinking that the coast is now clear to go inside for the joy ride (on the long side) only to take your money and disappoint you as she strangles you."

Heh heh. Now you're sounding like Shades.