The Chinese Started It

Letting the Yaun float a little seems to have had more effect on the long bond than Greenspan's efforts.


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"The Above Trends Have Been Fueled Synergistically in Recent Months by over-the-Top Aggressiveness by the Lenders and Homebuilders. The Share of Homes Bought with No Down Payment -- Zero Money Down -- Has Surged from Below 20 Percent Two Years Ago to About 40 Percent in Recent Months. Many of These Loans Were Combined with Teaser Interest Rates of 4-5 Percent."

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