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Politics : Israel to U.S. : Now Deal with Syria and Iran -- Ignore unavailable to you. Want to Upgrade?


To: Crimson Ghost who wrote (10094)2/15/2006 7:29:52 AM
From: sea_urchin  Respond to of 22250
 
Crimson > growing feeling that the Fed will tighten more than most had expected a few months ago

If US rates rise many Americans will be hurt and it will be disastrous for the property market. That's why a clue is to be found in the REIT's index.

stockcharts.com[l,a]dalaynay[dh][pd50,2][ilb14!la12,26,9]

Still going up -- so I would say all's well for further reductions on the interest rate front.

> The idea that the Fed would start to ease with gold, oil, real estate,and commodity prices in general still surging always struck me as absurd.

Lower interest rates drive up the price of Treasuries and that's what the Fed wants -- to make debt attractive. If it doesn't get buyers for the debt the game can't continue.