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

To: SouthFloridaGuy who wrote (78456)	2/4/2007 4:41:15 PM
From: John Vosilla	Respond to of 110194

'Housing problems are going to widen credit spreads because there are going to be many more defaults. People just have too much debt. This will negatively impact longer bonds. Concurrently and somewhat ironically, an economic slowdown is going to reduce foreign demand for our debt, which will put further pressure on bond prices. This whole process will put pressure on our dollar, making imports (including a big one, energy) more expensive.' Yes. I agree with that. GST has been slammed by your best friend for even thinking an economic slowdown could result in higher long term bond rates or higher costs of living. I think we really need much higher rates to empty the pool and see who was really swimming naked<g> All this nonsense with record low rates and easy financing hides a lot of the imbalances and support extended multiples to cash flow for most asset classes IMHO..