"If you agree that the tech bubble of the 1990s and the housing bubble of the 2000s were extreme, then you must not ignore a bubble that could be the most dangerous of all — grossly overvalued bonds.
That’s precisely the bubble we have right now! And in just a moment, I’ll tell you why it’s going to bust. But first, consider …
...What Will Trigger a Bond Market Bust?
Take your pick (one or more) …
Trigger #1. Inflation and Inflation Fears. Inflation has been so low for so long, that the complacency on Wall Street and Washington is bordering on the pathological.
Trigger #2. Deficit Inaction. When the Congressional Budget Office recently announced that THIS year’s deficit would hit nearly $1.5 trillion, bond prices fell and interest rates rose.
Trigger #3. Dollar Collapse.Three out of every five dollars financing the U.S. federal deficit now come from foreign investors. Only two out of five come from domestic investors (other than the U.S. government itself)..."
at http://www.marketoracle.co.uk/Article26136.html
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