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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Crimson Ghost who wrote (73405)1/10/2008 4:33:55 PM
From: KyrosL  Read Replies (1) | Respond to of 116555
 
People mistakenly believe that bold cutting of interest rates by the Fed also pushes down long rates. But those cuts prevent recession and fuel inflation, so long rates should rise rather than fall. Long rates responded quite normally to Bernanke's surprise today. Similarly, when he cut .5 instead of .25 in December, long rates rose sharply, at least until recession news became grim again.