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

To: mishedlo who wrote (53622)	2/13/2006 12:52:25 AM
From: studdog	Read Replies (1) \| Respond to of 110194

I recall when you and others here correctly called for long bond rates to fall just as Greenspan initiated the "measured" interest rate hikes, predicting the "conundrum" well before it happened. Remembering that, I have recently begun to think that if Bernanke were to lower short rates to stimulate a faltering economy any time soon, then long rates would rise rather than fall, throttling any intended stimulus. So, if the current Fed goal is to try to cool off inflationary pressures by getting long rates up, they would be more successful by LOWERING short rates rather than raising them, another side of, as you stated, "the next big conundrum". Karl