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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: gregor_us who wrote (25311)	1/26/2005 1:29:53 AM
From: John Vosilla	Respond to of 110194

Nice piece in Barrons this weekend on the predicament in the fed to perhaps raise interest rates faster and farther than many believe due to the market not doing it for him by keeping intermediate term rates way too low and allowing excess speculation in some areas that must be corrected.

To: gregor_us who wrote (25311)	1/26/2005 12:02:17 PM
From: Colin H	Respond to of 110194

Not to mention how bad they are going to hurt via higher interest payments for the federal government. I do believe the amount paid in interest is lower now than in 2000 despite an extra couple of $ Trillion added to the overall debt. Didn't Russ also post some Treas info on just how much they have to roll over each year because the fed has gone short to take advantage of the interest rates. On top of financing the regular deficit, they'll need just as much if not more, to roll over maturing securities. That will inflate the federal deficit just from interest payment increases. Makes the job of balancing the books even tougher.