Predictions of a bond market bubble are wrong

June 22, 2010 at 1:29 pm Leave a comment

David rosenberg wrote this article in FT

How can a security whose price is constantly projected to decline by the economics community be in a bubble? How can any asset class be in a bubble where the capital is guaranteed and which pays out a coupon twice a year? It makes no sense.

History shows that deleveraging cycles typically last as long as seven years, and we have just completed year number two

Outside of wars, deflation is the norm, not the exception. The exception has been the experience of the post-second world war era. It is remarkable how so few people in the financial industry get it.
http://www.ft.com/cms/s/0/a01c4fb6-7d7a-11df-a0f5-00144feabdc0.html

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