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To: SouthFloridaGuy who wrote (395)	3/1/2007 10:21:49 PM
From: Box-By-The-Riviera™	Read Replies (1) \| Respond to of 1718

nice. and what if, cb set rates suddenly become besides the point? do you know where i'm going with this?

To: SouthFloridaGuy who wrote (395)	3/2/2007 12:04:40 PM
From: John Vosilla	Read Replies (1) \| Respond to of 1718

'Until then, Fed policy, and for that matter, global rate policy, is way too accomodative' I agree. Have we ever had a time when the yield curve was this inverted for so long and credit so easily available. Most assets multiples to cash flow are tied to the 10 year treasury. Very low rates support stretched asset values. Take the 10 year from 4.6% to 7% which is where it really should be these days and asset values plunge 20-30% with the economy weakening dramatically. Risk free multiple drops from 22 to 14. Doomsday scenario of Shedlock, Roach, Roubini and others comes true but via a far different premise? Big question is what road we take to get there and how long it actually takes..