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


To: bond_bubble who wrote (74151)11/16/2006 1:44:40 AM
From: John Vosilla  Respond to of 110194
 
'Essentially, my guess is that interest rate is what is going kill this credit bubble rather than exhaustion'

Exactly. Imagine a world of 7% 10 year treasuries which was the norm not too many years ago. A contraction in most asset classes of one third competing with the risk free rate would result over time all else remaining the same.. 30 year fixed rate mortgages at 8.5% to 9% not too good for bubble RE..