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

To: bart13 who wrote (75206)	12/10/2006 7:29:18 PM
From: kris b	Respond to of 110194

Indeed, and the mixed signals continue to abound. I wonder how long can tail wag the dog.

To: bart13 who wrote (75206)	12/10/2006 7:47:25 PM
From: kris b	Read Replies (2) \| Respond to of 110194

the bank credit component has moved down from above 10% y/y growth to the mid to high 8% range. The bank credit growth slowed down to 3.7% in Q3 dow from 11.8% rate of growth in Q2. It is 219% drop in growth rate. Substantial slowdown in my books. The $ 64.000 question is will the contagion in sub-prime spread to the investment grade paper, and if, how fast. Will it cause the general credit/liquidity contraction? When will the general economy take the financial speculation down with it?