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

To: zonder who wrote (18629)	12/15/2004 12:05:51 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

I can not find any news that would cause short sterling futures to be rising. But I will gladly take it. Someone sure starting to think the UK will cut sometime after March 05. Mish

To: zonder who wrote (18629)	12/15/2004 12:13:13 PM
From: mishedlo	Read Replies (2) \| Respond to of 116555

yield curve flattening big time lately about 60 bps between 5 and 10 about 60 bps between 10 and 30 That has to make bank profits harder to come by Mish

To: zonder who wrote (18629)	12/15/2004 5:07:01 PM
From: RodgerRafter	Read Replies (7) \| Respond to of 116555

"I could use some help beating sense into mish..." It's good to see I'm not the only one. ;-) While we may have been right most of this year about the Fed continuing to hike short rates to keep up with inflation, I think Mish has been fundamentally correct about what happened with the first tightening (the July-August plunge) and how the Fed has essentiallly gone back to easy money by pushing the interventions out to the longer maturities. (Nevermind that Mish thought they'd go easy on short trates.) The 10 year note is probably the key to the economy, since mortgage rates are more or less tied to it. I'm a Fed conspiracy theorist at heart, and believe the Fed has caused many booms and busts by design, but sometimes I wonder if the plan this time is to just keep stimulating until the best assets of the US have been plundered and foreign investors and bankers stop financing the twin deficits. I'll keep digging through the data and report what I see.