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To: Bread Upon The Water who wrote (125468)11/24/2009 10:08:43 AM
From: slacker711  Read Replies (1) | Respond to of 541918
 
We're subsidizing rates lower than what the market would demand.

Add in China as well. They are buying US debt for reasons other than profit. That is one big reason why long-term rates never moved up during the housing bubble.

Slacker



To: Bread Upon The Water who wrote (125468)11/24/2009 10:23:59 AM
From: Steve Lokness  Read Replies (1) | Respond to of 541918
 
Vinter;

Additionally, because of this, when rates do rise the rise will be steeper and swifter than normal.

(edit) Might that explain bond prices?

am going out of my area of expertise here,

Well not to worry, almost all the "experts" have been wrong.

steve