Investment

© Inya Ivkovic

Credit Crisis

  1. permabear

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1.   Apr 21, 2008 3:52 PM

» permabear - Re: The trillion-dollar mortgage time bomb

In response to Re: The trillion-dollar mortgage time bomb posted by Jas_Jain:


Jas,

We'll just have to agree to disagree on the inflation/deflation debate and let events play out. I think that a bailout of Freddie and Fannie is a very high likelihood event. I think it would be highly inflationary if the government had to bail out Freddie and Fannie to the tune of a Trillion dollars. The Fed will print, print, print to keep the game going and the debts paid. The dollar will collapse. Treasury bond prices will collapse and rates will explode. (I'm still short the 30 year bond- winning trade so far). And inflation will accelerate going forward.

-- posted by permabear


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