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


To: Hawkmoon who wrote (104793)9/3/2009 12:52:48 PM
From: Elroy Jetson1 Recommendation  Read Replies (2) | Respond to of 110194
 
Is your real name Pete Stark?



To: Hawkmoon who wrote (104793)9/3/2009 2:50:12 PM
From: ggersh  Read Replies (1) | Respond to of 110194
 
Best explanation I've heard! Thanks!

"That's what fueled this bubble.. Excessive Chinese, Japanese, and European savings invested in US mortgage bonds and treasuries as a ploy to avoid disturbing favorable FOREX ratios. It was a supply of money that had to be invested and the US gov't had temporarily stopped selling 30 year T-Bills and when resume, the supply was limited. That money went into mortgage bonds instead, keeping rates artificially low, providing tremendous capital to be lent out and securitized."