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


To: benwood who wrote (83771)8/25/2008 10:21:32 AM
From: SouthFloridaGuy  Respond to of 116555
 
During the depression, real rates were 6%+ because inflation was negative. Real Rates rose in Japan in the mid to late 90's due to the same.

The Fed is slowly heading in that direction given how already low bond yields are and the fact that inflation has probably peaked (for now).

15% interest rates during a deflation doesn't make sense.