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


To: bond_bubble who wrote (50964)1/23/2006 2:41:25 PM
From: GST  Read Replies (3) | Respond to of 110194
 
You want me to say yes or no to a question premised on a Fed funds rate set at 20% -- I am sorry, I don't go in for questions from some other bizarre reality. The dollar is traded like everything else in the world -- and the market sets the price. The Fed tries to influence the price, but does not set prices along the yield curve. A Fed funds rate at 20% would likely trigger a complete meltdown of the US economy -- I doubt that would send people rushing to buy dollars.



To: bond_bubble who wrote (50964)1/23/2006 7:31:09 PM
From: TimbaBear  Read Replies (1) | Respond to of 110194
 
bondbubble

Fed sets fed funds rate at 25% will the Dollar fall OR rise?

Have you thought this question through? Do you realize what kind of flight from the USD must be occurring for the Fed to do something like this? The real question in this scenario probably would be: "Would this be enough to stem the fall?"

Timba