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

To: $Mogul who wrote (82326)	6/2/2007 2:03:53 AM
From: westpacific	Read Replies (1) \| Respond to of 110194

Look at a few Tax Free Muni Bond Funds this weekend. The charts have been major bullish for 20 years. They had nice runups throughout the 90s, in the 2000s they went flat line and in 2006 they started a downward curve. In 2007 the have now started to breakdown, breaking some very important technical support levels in the past few months. Ask your self a simple question, if this continues and you hold these bonds, will you continue to hold, or will there be a panic out of them. Who I ask will hold this debt? After you have done this read what D. Noland is thinking: "Some analysts see rising global bond yields as evidence of waning liquidity. I believe that bond markets are instead finally wising up to the implications of chronic global liquidity excess and the likelihood that central banks still have an abundance of work ahead of them – perhaps even at the Federal Reserve. Considering the amount of leveraging in the system – especially in the U.S. where markets have been too well-positioned for the next easing cycle – it is now conceivable that a spike in rates could lead to some problematic de-leveraging and liquidity issues." "I’ve argued for too long that the U.S. Credit Bubble is acutely vulnerable to a spike in interest rates. With the booming U.S. financial sector and global financial and economic Bubbles as a backdrop, we might now be only a growth spurt and a negative inflation surprise from testing this thesis. Deleveraging and the unwinding of speculative positions – and the associated reversal of today’s key sources and flows of liquidity - would be especially debilitating for our unstable financial sector and economy. And that’s, as they say, The Other Side of the Story." ---- Folks get ready for a massive spike in interest rates. Get ready to go short the double inverse ETF short funds along with real estate. I suggest also taking an investment in FXY (as a hedge against dollar cash), this could run 15% in the very near future. Both Buffet and Rogers are big on this bet, it happened in 1998 and it will happen again in the very near future. We are nearing the cliff for real estate and stocks. The FED is in a rabbit hole with the Fox at the door. The Bond market is THE MARKET.......which will they protect. THERE IS NO CHOICE IN THIS MATTER. If they do not, there will be a massive rush out of US Debt, along with a total collapse of the dollar. Good weekend all, and plan for what's to come. Remember this is not a question of 'if' it will happen, just a question of 'when'.....the charts say we are very, very close to that when. Closer by the month. West