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

To: jimmg who wrote (70120)	9/22/2006 4:14:02 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 110194

Low rates and especially low real rates encourage all kinds of speculation -- credit derivatives, various carry trades, etc. This is the primary factor behind the larcenous almost obscene amounts of money accruing to many on Wall Street while average folks struggle to get by in many cases. And pressure to buy now so as to beat future price rises is spreading IMHO. I do business with an outfit that agrees to service various items in the home for a fixed annual fee and they are aggressively encouraging folks to sign for two years so as to beat future price hikes. And they have indeed been hiking prices steadily year after year.

To: jimmg who wrote (70120)	9/23/2006 9:56:47 AM
From: russwinter	Read Replies (2) \| Respond to of 110194

<If you feel the long bond yields are way too low, you could go get a 30 year fixed rate mortgage on your house and invest the proceeds in something that is inflating faster than the interest on your debt.> Indeed, borrowing for such purposes plus speculative "better get it now" consumption is epidemic: September 20 – Bloomberg (Craig Stirling): “U.K. mortgage lending rose by a record in August, a sign the $6.8 trillion property market absorbed an interest-rate increase, figures from the British Bankers’ Association showed.” September 20 – Bloomberg (Elin McCoy): “The New York wine auction season started with four sales last week and is set to become a record breaker. ‘This is the greatest season ever for offerings,’ says Richard Brierley, 33, head of North American sales at Christie’s…”