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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (363085)	12/16/2007 11:01:06 PM
From: tejek	Respond to of 1577983

Part of the problem is too much money is going into Treasuries where the yields have improved considerably over the past few months." Which is what happens when the dollar declines. Same thing happened during the '70s. That was the tip of the iceberg. As time goes on, the US bonds start to crowd out all of the other bonds as they keep hiking the rates to cover the deficit. And that means business can't finance improvements and productivity drops. The dollar has been moving down for the past two years at least. This move to Treasuries has mainly been since August when the subprime crisis went on red alert. I see the move to Treasuries as a flight to safety because the stock market at this point is too volatile and because recession fears are heightened. I don't pretend to be an authority on this stuff.......just putting out what I've read and observed over the last few months.