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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (88882)	7/17/2009 9:30:59 AM
From: Skeeter Bug	Read Replies (1) \| Respond to of 94695

GZ, 1. people take money from T-bills and put it to work in stocks - think reverse flight to safety effect. 2. a recovered economy is one that will stimulate inflation pressure, so people want a better interest return when they lend money. the last time were at spx956, mortgage rates spiked to 6% in some cases. when the market fell and there was flight to safety and deflation concern, rates fell back to the low 5% range. rates are currently 5.25%, so this time has been different, but it won't last too, long, imho, for the reasons mentioned above.