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Strategies & Market Trends : Portfolio Construction -- Ignore unavailable to you. Want to Upgrade?

To: Keith Feral who wrote (582)	8/23/2007 3:38:20 PM
From: Paul Chiu	Read Replies (1) \| Respond to of 1964

gross did nail the short term rates call, which he placed a year ago, BUT he wavered back in May for no reason, hence my observation. still, you cannot ignore someone with nearly a Trillion in influence. as for fed funds at 4.77%, that's just market speculation for a 50bp east in Sept. thbe target is still set at 5.25% for banks to banks.... probably a better benchmark for you to watch is 1M LIBOR and 3M LIBOR. quite a few of my friends rolled over last few weeks when LIBOR reseted at up to 75bp when they woke up. this is a tremendous shock with traders especially those swap mgrs who had to ruin and hedge the basis risks. 3.5%...ummm at that level, your inflation would not be where it is now but where China is, near 4-5% Paul PS I'd always like reading and writing here during the day, takes me away from making dumb trades and losing money....