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

To: John Vosilla who wrote (28666)	3/15/2005 4:08:53 PM
From: ild	Respond to of 110194

I agree. I do. -g- The Fed has been holding real Funds rate deeply negative to jump start the US economy. The result -- speculation using cheap money all over the world and huge buildup in China.

To: John Vosilla who wrote (28666)	3/15/2005 4:13:32 PM
From: dpl	Read Replies (1) \| Respond to of 110194

The market back then was in a bubble.In a bubble the "real" interest rate means nothing.All that matters is what interest rate will prick the bubble.Most of the time when the yield curve inverts you get a bear market.The Fed inverted in the spring of 2000.Since the market was the most over priced,and more important over owned in history, you got a big bear. S&P -50% Tech -80% We have the same situation now.Real rates mean nothing.What is important is what rate will prick the RE bubble.