tag:blogger.com,1999:blog-11027528911364475.post1238682248603136439..comments2024-02-18T21:10:05.205-08:00Comments on EconomPic: Credit Risk AnalysisJakehttp://www.blogger.com/profile/07946497592651234440noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-11027528911364475.post-26857536898339452962008-11-10T19:51:00.000-08:002008-11-10T19:51:00.000-08:00agreed, BUT a 70 year long credit bubble is deflat...agreed, BUT a 70 year long credit bubble is deflating. if this process isn't stopped, rates could go lower and stay lower for a long period of extended time. <BR/><BR/>i think this process will in fact be stopped as mr. bernanke and company won't stop until this threat is neutralized. at that point, inflation and high interest rates will likely be the result.Jakehttps://www.blogger.com/profile/07946497592651234440noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-61854111721486714812008-11-10T16:50:00.000-08:002008-11-10T16:50:00.000-08:00Bailouts' Unintended Consequences Within the next ...Bailouts' Unintended Consequences <BR/><BR/>Within the next 12 months the yields on treasuries will begin to rise. This is because the fools (China etc.) who have been willing to accept low interest rates will be tapped (China has a stimulus package of their own to fund etc.) out.<BR/><BR/>This will cause all interest rates to rise, which will make the housing market worse. If it gets too much worse then the stability of the financial system will once again be the main concern.<BR/><BR/>Shorting treasuries seems like a rational investment, but yields may decrease before they increase.Owner Earningshttps://www.blogger.com/profile/17837801719246490816noreply@blogger.com