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


To: GST who wrote (71811)10/13/2006 11:16:30 AM
From: John Vosilla  Read Replies (1) | Respond to of 110194
 
'We are indeed floating on a cushion of air supplied by the dollar/bond bubble. So long as we don't stall out the economy, the bond and stock markets seem to be betting that we ride out the cooling of the housing market without slipping into recession or crashing the dollar'

Yes. It seems keeping long term interests rates at such low levels cushions the blow. The biggest fear to me long term is much higher interest rates from the twin deficits. But for now very low interest rates, low unemployment and continued strength of our financial institutions allowing them to continue extending credit to the masses is a deadly combination to bet against..