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To: LLCF who wrote (104694)5/24/2001 7:15:47 PM
From: Joan Osland Graffius  Read Replies (1) | Respond to of 436258
 
LLCF,

Do you have any thoughts on how high the interest rate on the long bond could go before we see a reversal?

Joan



To: LLCF who wrote (104694)5/24/2001 8:15:55 PM
From: Don Lloyd  Read Replies (2) | Respond to of 436258
 
DAK -

Are you sure... I'm figuring about 3 1/2 points left to ease over the next year.

No, but the rate cuts are already ineffective at best, and counterproductive at worst. Either the past cuts have already accomplished whatever it is they're trying to do, or else it can't be done and more of the same won't help.

Regards, Don