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

To: Sun Tzu who wrote (93397)	4/10/2008 3:08:27 PM
From: John Vosilla	Read Replies (2) \| Respond to of 110194

<<But Mr Browne looks at me disapprovingly, as it is painfully obvious that I am "slow" and I did not understand the significance of housing values that revert to the historical mean, as "To 'de-leverage', as US Treasury Secretary Henry Paulson so soothingly describes it, will require the squeezing out of this 40% of price inflation; or some US$12 trillion! This figure, which excludes the de-leveraging of other debt-ridden areas such as commercial real estate, credit cards and auto loans, is just $2 trillion short of our entire annual GDP! It is a gigantic figure, of which there is understandably little or no mention.">> I understand it half the country never had a housing price bubble and we have been going down at a rate of $2.5T a year for a good two years now.. Perhaps another year left with most of it concentrated in the largest coastal late stage crash MSA's? Now if we have three more years of this to go then yes Mish will be right and we are headed into a deflationary depression..

To: Sun Tzu who wrote (93397)	4/10/2008 3:12:27 PM
From: Sun Tzu	Respond to of 110194

Fed's $50 Billion TSLF Operation Draws Bid-to-Cover Ratio of 0.68 14:37 04/10 (CEP News) – Today's loan of $50 billion in various treasuries at the Fed's Term Securities Lending Facility drew a total of $33.95 billion in bids. The bid-to-cover ratio was 0.68, which means only 68 cents were bid for every dollar auctioned. This is much lower than the previous bid-to-cover ratio of 1.88. The stop-out rate was 0.25%. The TSLF loan is for a period of 28-days. By Erik Kevin Franco, efranco@economicnews.ca, edited by Nancy Girgis, ngirgis@economicnews.ca (END) ©CEP Newswires - ©CEP News Ltd. 2008. All Rights Reserved. www.economicnews.ca