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

To: KyrosL who wrote (88738)	11/8/2007 3:50:21 PM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

'1% Fed funds is the easiest way to get them back on their feet. Who knows, perhaps this time around we will behave like Japan, and no new bubble will emerge.' Banks won't survive with the net interest margins where they are today combined with credit losses from housing... This is the biggest issue of all Bernanke is probably concerned with.. If long term rates remain so negative then certainly there will be more bubbles. Japan wasn't like the US as we are not savers, are the biggest debtor society ever and have land to grow an ever expanding population plus assets today outside of a few housing markets along the coast and a few parabolic stocks are reasonably valued unlike Japan RE and stock market in 1990.. The bubble now appears to be the bond market as well as China..