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

To: mishedlo who wrote (69924)	9/19/2006 12:02:07 AM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

Mish I think you have way too many followers in the bond pits and foreign holders of all this debt these days willing to take the 4.7% over 10 yrs cause they've been spooked by your deflation call<g> You know by keeping the long end rates so low you are supporting asset values such as stocks, RE and bonds at lofty levels. More inflation pressures and a floor on values.. The 4.7% equates to a 21 risk free multiple. At 7% which was average during the Clinton years that would be a 14 risk free multiple. So today we have a 50% premium for certain assets from just that one variable alone.