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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: bond_bubble who wrote (50949)1/23/2006 2:20:02 PM
From: GST  Read Replies (1) of 110194
 
Interest rates are what people charge for money. The Fed does not set rates along the yield curve -- surely you know that. Surely you also know that to stand still we must find $2 billion per day to cover the current account deficit. If FCBs want a higher return to compensate for currency risk they will get it the way all things are obtained -- in the marketplace. The Fed can do little if anything about that. The Fed can have some influence, but the Fed is far from being a powerful actor that will decide what is or is not going to be "allowed" to happen.
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