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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?


To: Enam Luf who wrote (640335)10/7/2004 10:42:46 PM
From: DuckTapeSunroof  Read Replies (1) | Respond to of 769670
 
"the fed is in a box, unable to raise rates too far without tanking consumer spending,"

The Fed doesn't control long-term bond rates --- the market does.

If China and or Japan cut sharply back on their purchases of our treasury debt at auction, then market rates will rise, and FAST.

"at least it's better than the alternative (a la post bubble japan)."

That scenario of long-term stagnation is not entirely out of the question here....