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

To: orkrious who wrote (99877)	11/24/2008 3:33:56 PM
From: Broken_Clock	Respond to of 110194

The wheels are out of alignment and yet still the crooks in DC are putting the pedal to the metal. Can you feel the shimmy and shake? -g-

To: orkrious who wrote (99877)	11/24/2008 3:43:25 PM
From: gregor_us	1 Recommendation Read Replies (2) \| Respond to of 110194

I smell reflation. While I have no doubt there will be a ton of back and forth action, something does appear to have started taking hold a week ago Thursday with the very poor 30 Yr Treasury auction. Then one week later, just this Thursday, the Deflation trade was back on again in a huge way. We might look back on that day as the Deflation blowoff day, with those new low prints on Yield, and on indexes. Don't know. What I do know is that they can't ultimately do all the bailouts and infrastructure spending without printing. I also know that while US stocks are not back to 1982 prices, they are as an asset class back to 1982 valuations in the sense that the 25 year high multiples that drove value managers crazy have finally gone away. The FTSE 100 had a dividend yield of 7.20% last week. That's after several rounds of dividend cuts from UK financials. Truly amazing. Deflation Trade about to get smacked? Message 25204027 G