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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Jim Willie CB who wrote (2162)3/15/2004 10:39:08 PM
From: KyrosL  Read Replies (2) | Respond to of 116555
 
Jim, what happens in this scenario:

The Fed hikes short rates to, say, Roach's target of 3%, and the market flattens the yield curve completely, so long rates also drop to 3%.

I don't see a disaster in such a scenario. In fact there maybe more pluses than minuses -- for example much reduced debt carrying costs for mortgages.