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

To: 2sigma who wrote (78096)	1/25/2007 11:34:38 AM
From: GraceZ	Respond to of 110194

You think that the Fed sets long term interest rates? That they can make you or anyone else lend money at whatever rate they set? Ask yourself this, what rate were you lending your own money at between 2001-2004? I'm guessing most on SI who still had money left after the tech bust had large cash positions which paid worse than Tbills. If you followed the precipitous decline in C&I lending from 2000 to mid 2004 you'd see that they were simply following the demand for money down, down, down. Notice they started raising rates as soon as C&I picked up again. They follow, they don't lead. mywebpages.comcast.net