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


To: GST who wrote (96414)8/18/2008 7:20:16 PM
From: John Vosilla  Read Replies (1) | Respond to of 110194
 
'To the rest of the world we will simply be those poor people with bad credit to which you charge a higher rate of interest because of the higher default risk'

This then goes back to the ultimate conundrum of low long term treasury rates perhaps the savings grace to avoiding a total diaster from this credit/housing implosion. In your scenario they should be quite high by now. Or does back end monetezation and recycling of excess dollars back into US t-bonds by our creditor that continue to run up huge trade surpluses without their own mature financial markets trump all? What a slippery slope and house of cards destined to blow up... You would think it would be urgent to get out or Iraq diverting resources to rebuilding our economy, narrow the budget deficit, and develop alternative energy ASAP here at home.