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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (67831)	8/20/2007 4:57:14 PM
From: andiron	Read Replies (2) \| Respond to of 116555

mish, do you expect 2,5,10 yr treasuries to rally (if a fed cut materialize which in my view may be at the most 1/2%) here..or a strange thing will happen: curve will steepen. Lester (MIT) just came out w/ his take that chinese GDP may well be growing at 1/2 the published 10% and that would mean inflation in china must be raring to go up..same w/ india /russia w/ 30+% credit growth. Meaning import prices are beginning to curve up. So yes, US demand would flag but emerging market supply side has more inflation in it. Meaning 25 yr bond market bubble has ended.

To: mishedlo who wrote (67831)	8/20/2007 5:02:17 PM
From: ballsschweaty	Read Replies (2) \| Respond to of 116555

A "flight to safety" and yet we see 10%+ moves in fslr, crox, bidu and rimm. That doesn't square with a flight to safety. Warning of an imminent collapse in Fannie Mae and yet the stock was up 25 cents today to $67.50, 30%+ higher than its 52 week low and only 3% below its 52 week high. There is absolutely zero evidence that short term Fannie paper in money market funds is about to go bust. The ultra low t-bill yields likely have more to do with the massive reserves infused into the system by the global central banks than any true flight to safety.