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


To: Tommaso who wrote (83661)7/16/2007 9:16:29 PM
From: GST  Read Replies (1) | Respond to of 110194
 
Except for the stock market decline, most of your predictions are already in evidence. At the first signs of a US slowdown the kneejerk reaction might be lower bond yields. That could come soon. As the implications sink in it will likely produce a flight from the dollar that will break long term support. This will be a flight to safety out of the dollar -- a reversal of what we have seen in years past. That is most likely to source of concern for stock markets as the risk return prospects of owning anything denominated in dollars turns negative. As the dollar sinks everything falls apart for the US -- sad.