Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Dan3 who wrote (77833)	4/17/2008 10:49:54 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Interest rates on mortgages have not dropped. Average short term rates actually being charged by CC companies (if you include fees) are very high. That is called credit risk and I called for it in advance. So far as I know I am the only one who called for mortgage rates to disconnect from treasuries. And they did. I called for corporate bond yields to skyrocket as well. They did in the great depression too. Only treasury yields can be expected to go down. Look at muni bond yields, up to. I did not call for that but it should have been expected. Credit/debt is getting smashed across the board while treasury yields plunge. That's exactly what happens in deflation. Inflation models would not have treasury yields dropping like they have. Mish