Booms, Busts, and Recoveries Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: TobagoJack who wrote (22500)	8/11/2002 12:36:11 PM
From: Mark Adams	Read Replies (1) of 74559

because interest cost is low, still, unnaturally. I agree, and yet in the US, it is suddenly quite fashionable to call for even lower rates. Per the Weldon piece, the average inflation rate over the next ten years priced into the USTreasuries is a mere 1.3%. I think I heard that demand for non indexed 10yrs is drying up at these rates. I realize the investment banks might be trying to get everyone on board the bond mini bull, desiring to push things to extreme, before the next swing kicks in. I realize that players might be rebuilding balance sheets, borrowing at 1.5% and lending at 4-21%, depending on the borrower. I realize that real interest rates need to be lower than the real growth rate, lest the interest burden prove unsustainable long term. But dropping fed funds to 1%? Clearly a Japan script if they are honestly expecting that. income earning real estate in chosen locations. That Thailand beachfront property sounds pretty nice to me. <g>

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next