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Interesting: Last big spike in the 30/10 spread was in summer of
1986......12 months before the crash of '87.
Shorten the time-frame a bit to account for the "new economy effect" and we
are looking at a potential market "hit" by September of this year ??
> -----Original Message-----
> From: Gary Funck [mailto:gary@xxxxxxxxxxxx]
> Sent: Wednesday, December 26, 2001 10:05 PM
> To: realtraders@xxxxxxxxxxxxxxx
> Subject: RE: [RT] M 3 update
>
>
> Agreed. Attached is a plot of the 30yr mortgage rate vs. the US 10 year
> note.
> Is this wide spread a signal of systemic financial stress?
>
> The most recent comparable highs were in Dec-1998, presumably in the midst
> of the LTCM crisis, and Jul-1986 (ahead of the 1986-87 real estate boom?),
> and Apr-1980 (the peak of 80's inflation?).
>
>
> M. Simms wrote:
> -----Original Message-----
> Sent: Wednesday, December 26, 2001 7:00 PM
>
> We're drowning in short term money, yet 10/30 yr bond yields continue to
> rise......and banks are not lending out this money,
> they're TRADING with it instead (less risky than loans).
> this is not good news.
>
>
>
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