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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 (69089)	8/30/2006 10:20:20 AM
From: John Vosilla	Read Replies (2) \| Respond to of 110194

'Stock market likes inflation as long as it does not cause bond yields to rise. Given current inflation 10yr yield should be at 8-10%.' Well something has to give. Perhaps a serious recession with some moderation in inflationary pressures is what the next few years hold? Then we perhaps get the 8-10% long end on the next worldwide recovery? Maybe 1973-80 is just around the corner?

To: Mike Johnston who wrote (69089)	8/30/2006 4:17:16 PM
From: 8bits	Respond to of 110194

"Given current inflation 10yr yield should be at 8-10%." I tend to think if the Japanese, Chinese, and the oil producing states were to drop their position of vendor financing (buying US debt with their surplus US dollars..) we would see these yields or higher. Of course the US government could get it's act together and not run a deficit. It's always nice to dream of rational behavior.