SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: UncleBigs who wrote (57622)4/6/2006 3:33:44 PM
From: J_Locke  Read Replies (1) | Respond to of 110194
 
The fed can't stop until commodities stop going up and the savings rate stops going down. Real interest rates are still less than 1%, which isn't enough to get Americans to forgo consumption in favor of savings. Look at New Zealand, which has similar problems. They've jacked rates all the way to 7.5% and are only now seeing signs of an incipient slowdown.



To: UncleBigs who wrote (57622)4/7/2006 12:11:10 AM
From: John Vosilla  Read Replies (3) | Respond to of 110194
 
"The only danger lurking out there is housing."

Fed funds were kept too low for too long. If they had started raising a little sooner and at faster increments the chances of success would have been much greater. We needed a flattened yield curve a year ago.. Speculation was way out of control by then. All those unneeded condos being built and 20-30% added home appreciation in 2005 will have serious ramifications for years to come..