Hi Chuzz,..Re:.wouldn't you agree that the real issue is not so much interest rates as real interest rates (i.e., inflation adjusted rates).
Yep, I agree. However, the real interest rate, coupon, on the 10 year treasury is 4.75% and inflation as measured by the last released CPI is 1.7% so the 'real rate' is 3.05% which is low compared with the 3.6% yield over the past decade. You can get an indexed 10 yr. which yields 3.87%.
ny.frb.org
quote.bloomberg.com
Ten-year Treasuries have yielded about 3.6 percent, after inflation, over the last decade.
The current yield curve is steepening and probably with good cause when we consider all the recent economic reports.
Re:.I'm not sure that this is a new paradigm. I think we are seeing a burst of new technology similar to what happened a century ago. But we will eventually achieve a new equilibrium level.
I think we're at a very low level on that curve and equilibrium is far away.
sha.cornell.edu
The more technology evolves, the more new applications and concepts are invented. Look at the medical industry and gene discoveries, look at the space program and the spread of technology filtered down to domestic applications, and now the net which is probably more revolutionary than the telephone. We're just at the beginning.<g>
Maybe we should clone AG since he seems to understand this?<vbg> Then again, maybe I just don't 'get it'.<g>
Cheers,
Lee |
