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


To: Mike Johnston who wrote (88025)10/27/2007 12:32:52 PM
From: John Vosilla  Respond to of 110194
 
'IMO once the decision is made to rig the bond market, they cannot have that decision reversed as the minute the bonds are allowed to trade in a free market ,it would cause a rapid 100% rise in yields to reflect a true inflation rate in the economy.
In this case a Great Depression 2 starts soon thereafter.

On the other hand, continuing rigging of the bond market will assure the hyperinflationary outcome as rates stay artificially low in the face of ever increasing inflation.'

Bingo Mike. Best summary I've ever heard. Have a great weekend..



To: Mike Johnston who wrote (88025)10/27/2007 9:48:28 PM
From: roguedolphin  Respond to of 110194
 
Mike .....great work here! I love your incredibly coherent and succinct view of our dire financial reality!!

Rogue



To: Mike Johnston who wrote (88025)10/27/2007 9:57:56 PM
From: Giordano Bruno  Read Replies (1) | Respond to of 110194
 
Just curious, how does a person or entity rig the bond market?



To: Mike Johnston who wrote (88025)10/27/2007 11:06:58 PM
From: RJA_  Respond to of 110194
 
>>IMO once the decision is made to rig the bond market,

Mike, how would you rig the long term bond market??

Essentially, buying your own bonds?

Wouldn't the volume have to be so large as to be self defeating, after all, the reason for bonds is financing the deficit, which is quite large...

I'm not saying it couldn't be done, or that these guys wouldn't do it, but how??



To: Mike Johnston who wrote (88025)10/28/2007 4:24:52 AM
From: Proud Deplorable  Read Replies (1) | Respond to of 110194