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Replies to #89652 on Biotech Values
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medchal

01/26/10 8:45 AM

#89656 RE: exwannabe #89652

You are technically right, but investors would justifiably see any inflation approaching the "run-away" variety as a risk almost indistinguishable from default risk (which is not to say that credit default swaps could or would be issued against inflation risk). The last time such risk was apparent in the market was during the Carter administration, and it wasn't pretty.