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Strategies & Market Trends : Interest rate rise will trigger market crash / correction -- Ignore unavailable to you. Want to Upgrade?


To: Peter R Smith who wrote (50)5/31/1998 2:38:00 AM
From: Ingenious  Read Replies (1) | Respond to of 52
 
Interest rates are dropping quickly with Asian debacles

yet the FOMC has essentially held steady. I believe the Asian money is seeking US bonds in a flight to quality and preservation of capital. This is causing a demand for bonds and a drop in yield. Any thoughts on this? If rates drop further, it could propel us into a serious frenzy of borrowing followed by increase in buying and inflation.