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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 (68617)	8/22/2006 11:45:08 PM
From: John Vosilla	Read Replies (3) \| Respond to of 110194

'Australia is a clear evidence that interest rates rise, house prices crash and still you have inflation!!' It really is the only way out. Deflation leading to depression will be avoided at all costs. Just repeat the global liquidity rush in 2002-03 if things get real bad. Run a trillion dollar deficit, create a few wars if necessary, easy lending standards, lower fed funds to 1% and get the printing presses humming at 15-20% growth in the aggregates. Few expenses really drop with lower housing prices. As a matter of fact even monthly payments PITI might not fall at all with higher rates, less availability of toxic loans and RE taxes already earmarked to be spent for years to come. Drop the assessment and raise the millage rate<g>.