Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: puborectalis who wrote (10759)	10/14/2001 10:29:35 PM
From: rolatzi	Respond to of 74559

Interesting strategy Not all say the Treasury should work to hold down bond yields. Drew Matus, a financial markets economist at Lehman Brothers Holding Inc., says lower bond yields would indicate investors aren't expecting an economic recovery soon. ``The only way'' to bring down long rates ``is to have people think that the economy isn't going to come back anytime soon, which is something the government doesn't want to do,'' Matus said. The best way to keep the consumer solvent is by getting long term rates even lower. This will allow continuing refi's on mortgages and will float continued consumer spending. On the other hand, if banks and S&L's are getting pressed, a steep yield curve will allow them a good profit margin by borrowing cheaply at short term rates and lending expensively at high long term rates. Of course they may have no one to lend the money to. rolatzi