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

To: orkrious who wrote (6073)	5/10/2004 10:43:24 PM
From: russwinter	Read Replies (1) \| Respond to of 116555

As steep as the curve is, I think it actually still encourages the carry trade. If I ran a big hedge shop, I might be getting ready to replay the borrow USD short, buy currencies, gold, and so on, just to call the Wizard's bluff. I say, damn the torpedoes (your crackerass 25 bps rate increase) full speed ahead. So no, I think the short term rate is mostly the key to the USD, and even with an increase it's still way too low.