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Strategies & Market Trends : Sharck Soup

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To: Sharck who started this subject3/15/2001 10:40:22 AM
From: velociraptor_  Read Replies (1) of 37746
 
Another thought on FED and interest rates.

I picked this up from another board and it makes perfect sense though I did not even think about it. Our interest rates are now close being on par with some other countries such as Germany. Considering the large amount of foreign capital in our bonds and treasuries, if Greenspan keeps aggressively lowereing rates, then our bonds and treasuries will not be the best investment around and we would see these investments shift to other countries that offer better rates.

We have too much at stake here. Greeny won't be reducing rates by 75bp as many want, and though I expect about 50bp, I am now putting this into question with the above data.
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