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


To: studdog who wrote (53648)2/13/2006 2:18:57 AM
From: mishedlo  Respond to of 110194
 
Lowering short term rates would cause other problems thought.

I really think the FED wants to rein in junk bonds, IPOs, merger mania, etc. Lowering rates would fuel that nonsense.

Oddly enough, once the air comes out of that, who know where housing will be? I suspect mortgage rates may not fall even if the long end does, and as I have said for some time, there is the very possibility of a spike on the long end on a cut or a pause.

The FED is really in a box and I am not sure they even realize it.

Mish