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

To: Mike Johnston who wrote (68390)	8/16/2006 12:47:31 PM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

How much longer can the industrialized countries continue to monetize the long end in unison before we all pay the piper? US long term rates are higher than Euro or Japan so the low rates compared to history the past 45 years seem low but compared to credit risk free alternatives today they are high. 5% also beats the pants out of the 1-2% yield on bubble RE so many have been fascinated with lately.

To: Mike Johnston who wrote (68390)	8/16/2006 1:48:37 PM
From: russwinter	Read Replies (3) \| Respond to of 110194

Someone is holding all those 5% fixed mortgages from 2003 in an inflationary environment. Fannie Mae, Asians ?> Not just 2003, look at all the securitization of ABS and mortgage backed in the last three quarters. This toxic waste is pretty much everywhere: pensions, FCBs, hedge funds, banks, hidden in so called "government securities" money market funds, you name it. It funny how nobody really comes clean on who holds the rising delinquencies, and what is sure to be a foreclosure rout? There is also a lag time (or falsification?)in company reporting apparently. Enronitis?