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

To: John Vosilla who wrote (69377)	9/6/2006 12:53:05 AM
From: studdog	Respond to of 110194

"You think it is possible for them to do it again without ramifications on the long end of the curve?" If the fed lowers short rates, then I would expect long rates to rise, as that would be pouring gas on the smoldering inflation fire.

To: John Vosilla who wrote (69377)	9/6/2006 1:29:43 AM
From: mishedlo	Read Replies (1) \| Respond to of 110194

'I could easily envision funds going down to 2% and 10 year at 3% to put a floor under the housing market while gold explodes north of $1000, the dollar declines significantly and inflation goes through the roof.' Given that you equate inflation to prices, please tell me what prices are going through the roof while housing stagnates. It really makes no sense (at least to me). Are wages going to the moon too? What about jobs? Obviously all of the bankruptcies that are coming are of no concern to you. There will be no floor on housing unless jobs and wages pick up. I see neither happening. In fact, if this is a secular change and I think it is, jobs and wages and low interest rates might not even be enough. Mish