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

To: bond_bubble who wrote (68047)	8/10/2006 10:11:39 PM
From: shades	Respond to of 110194

What happened in UK when interest rates were lowered last year? Prices appreciated 7%!! Did UK have lots of ARMS about to reset? Many here say that is big deal - guy on CNBC yesterday said it was big deal too and didn't matter what fed did with rates - resetting loans was what was going to screw the pooch and start the tumble. Banks already letting indebted homeowners get 6 months FREE no payments hoping homeowner finds peter to rob so they can pay paul. They do not want to foreclose. Do you think this will still be the case going forward? Now that there is so much demand from Ethanol manufacturers. My grandpa would have loved to have been paid to not grow corn - he would have still grown it - just drunk all the moonshine for his own consumption - hehe. I think the Ag lobby is pretty powerful in congress Jay - the guys I know that don't grow corn have many fishing trips and vegas trips with politico types. I have heard it claimed because the primaries for the politicos start in ag states and that sets the tone for the elections that those AG people have much more political influence than they should. Fed has been quite so far because FCBs have been doing good job. That does NOT mean Fed will do it in the future. True - Japan flooded the swamp - when/if they drain who will flood in thier place? about rising interest rates in 1928). How come, reducing after 1 year make so much difference? I don't know - is it like walking a tightrope - if you dont adjust your balance quick enough on either side you fall and die eh? I guess it could, but as I said, systemic risk happens because wall street thinks Fed will lower rates when they run into trouble and hence they are heavily loading up on risks. If they dont, their peers will! If Fed fails to back them up even for 3 months credit should be unwinding the Greenspan Put will not trusted right? Fed has met with banks to get a handle on all this derivative mess and to try and reduce failure to deliver - transactions taking far longer to clear - reducing systemic risk - etc etc - you don't believe they can do it in time? In 1932, Congressman might have paid the foreigners. Not this time!! The credit default has to result in dollar losing its hegemony. Lots of people saying dollar has to fall - Treasury secretaries saying its the best thing really - but Warren B just took off his dollar short - crazy eh?