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Subject:  Re: "Long Bond" - buying and rolling Date:  2/13/2006  5:03 PM
Author:  WendyBG Number:  15380 of 36318

<If there is major deflation, banks will fail and so will the FDIC, and the government will not be able to bail it out.>

Failure of the FDIC is tantamount to default of the U.S. government. That is truly a doomsday scenario. I don't think it will happen.

The government can print as much money as it needs, to bail out the FDIC and failed banks. The subsequent inflation is a separate issue.

Wendy (not buying a tin foil hat, yet)
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