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

To: ggamer who wrote (86228)	9/13/2007 12:17:49 PM
From: Mike Johnston	Read Replies (4) \| Respond to of 110194

House prices are inflated, stocks are inflated. But the biggest bubble is in government bonds. 4% + yields with soaring inflation ( over 10% ), and the people buying those things have degrees from Harvard. Yes, tough economic times can influence bonds but the biggest determinant is inflation. Bonds are going up , because economy is slowing. But they should go down because out of control inflation.

To: ggamer who wrote (86228)	9/13/2007 12:22:58 PM
From: Crimson Ghost	Respond to of 110194

Stocks are inflated because interest rates are deflated and negative in real terms. A major bear will not happen as long as rates remain absurdly low and drop lower still on the slightest hint of economic or financial turbulence.

To: ggamer who wrote (86228)	9/13/2007 1:12:27 PM
From: Real Man	Read Replies (1) \| Respond to of 110194

"I just do not understand what is keeping this stock market at these levels." some say index futures "And why is the government so worried about a 20% drop in the stock market?" Correction: a 5% drop. Cause they are mega long index futures -g-