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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?


To: Katelew who wrote (152012)12/11/2010 12:24:11 PM
From: Sam  Read Replies (1) | Respond to of 542534
 
The dramatic backing up of rates this week and the subdued reaction of the stock market makes me uneasy.

Rates were unsustainably low before--that was what made me uneasy. It was inevitable that they would back up once people became convinced that economic growth would revive beyond 3%. They are still, by historical standards, very low. They will be going up. If you can get fixed debt now, you should be getting it. Especially if it is for long periods of time. JMO.



To: Katelew who wrote (152012)12/11/2010 12:29:46 PM
From: KyrosL  Read Replies (1) | Respond to of 542534
 
In a way the back up of long term rates is good: it will force the politicians to face the long term deficit problem. Maybe Obama will get to appreciate the power of the bond market, like Clinton did. But you are right, they are not good for stocks and bonds.