Zeev's Turnips Patch-No Politics (ZEEV)

[mlsoft]

" I find it hard to believe that AG has lost control of the bond market. I wonder why he is willing to sacrifice higher mortgage and lending rates for equities? The consumer has been what has kept the world economy afloat, why turn off the spigot now? "
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Joe...

It is an interesting development but as I said some time ago, most all homeowners willing to take their equity out of their homes to pay for "stuff" have already done so. The bond markets are incredibly enormous and the expense of propping them up for an extended period of time would be prohibitive, even for the Greenspan. I do think he will have to step in at some point to stem this crash and stabilize the bond markets, but he has already written off re-fi's as a source of consumer cash. That is why he is desperately trying to drive the markets higher as a replacement source of consumer funds.

mlsoft