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


To: ild who wrote (68376)8/16/2006 11:04:02 AM
From: John Vosilla  Read Replies (2) | Respond to of 110194
 
Financial institutions would eventually blow up if they ended up holding all these 5% 30 yr fixed rate mortgages in a long term inflationary environment. Biggest hint was from Greenspan who wanted the common man to take out an ARM last time fixed rates were that low.

Perhaps the grand plan is unload all that fixed rate debt on Chindia and for Middle East petrodollars?