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Date Posted: 06:55:52 10/21/04 Thu
Author: Sam L Yaker
Subject: Re: David Faber/Joe Kernen
In reply to: Stock Research 's message, "David Faber/Joe Kernen" on 05:12:01 07/17/00 Mon

David... Please inform Mark Hanes and the rest of the thinking people at CNBC... and that, of course, excludes Kudlow....Tell all of our friends that the current low yield on 10 year treasuries is a direct result of the U.S. huge negative trade imbalance....We're sending billions of dollars all over the world... Many of those dollars are invested in and create demand for U. S. Treasuries... One day the U.S. Dollar will start falling big time and/or those foreigners will wake up and then WATCH OUT... U.S. Treasury yields will skyrocket. 10 Year Treasury yields should be a function of "inflation expectations" plus 3% or 4%... that would menan that 10 year Treasuries should be at a 5.3% to 6.3% yield today... Eliminate "cheap money" and the rate of inflation will rise to as much as 4% immediately... which will result in 7% to 8% 10 year U.S. Treasuries almost immediately....

YOUR THOUGHTS WILL BE APPRECIATED...

Sam L Yaker
xif@prodigy.net

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