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


To: Investor2 who wrote (10220)11/23/1997 8:26:00 AM
From: bearshark  Read Replies (1) | Respond to of 94695
 
Investor 2: I cannot remember but it would be interesting to see. I seem to remember Volcker setting the discount rate well above the rate of inflation. I also seem to remember mortgage rates of about 17 percent. If we assume that the 30-year bond was about 200 basis points below the mortgage rate, then we would have had a fairly flat or inverted curve.