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

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To: bond_bubble who wrote (50964)1/23/2006 2:41:25 PM
From: GST  Read Replies (3) of 110194
 
You want me to say yes or no to a question premised on a Fed funds rate set at 20% -- I am sorry, I don't go in for questions from some other bizarre reality. The dollar is traded like everything else in the world -- and the market sets the price. The Fed tries to influence the price, but does not set prices along the yield curve. A Fed funds rate at 20% would likely trigger a complete meltdown of the US economy -- I doubt that would send people rushing to buy dollars.
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