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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: bond_bubble who wrote (51381)1/25/2006 2:45:55 PM
From: GraceZ  Read Replies (3) of 110194
 
Long term interest rates are not kept low by the government printing more money. Long term interest rates are set by inflation expectations. In fact printing more money would have the opposite effect, raise inflation expectations and long rates. Bondholders would demand more inflation premium for the use of their savings.

This is a fundamental concept.

Answer this, in the last five years at what rate were you willing to lend your own cash balances and why?
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