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To: muawiyah
All that surplus cash now available as people dump stocks will have to go into BONDS and MORTGAGE INVESTMENT VEHICLES.

Should be able to remortgage your house for UNDER 1% in a week or so.

USA should be able to take all its sort term and long term debt and replace it with paper paying only a fraction of a percent ~ or maybe NOTHING AT ALL~!


Not likely. Interest rates will stay low for the short term because the fed is buying up the entire yield curve now. However, once significant inflation sets in, the bond vigilantes will awaken and punish bond holders. You will lose your @$$ if you are holding bonds. Cash will flow into gold, the only safe haven out there. It's happening right now
10 posted on 08/07/2011 7:54:22 PM PDT by dollarbull (why are paperbugs so bad at history?)
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To: dollarbull
We are still waiting on the inflation ~ looks more and more like yet another round of deflation.

Regarding holding bonds ~ bank deposits are worse with banks offering "negative interest' ~ that is, you pay them good money to just hold your deposits.

Did you ever wonder what the world would be like the day the computers really took hold?

This may be it.

13 posted on 08/07/2011 8:00:04 PM PDT by muawiyah
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