Nothing here should be taken as personal advice, financial or otherwise. No liability is accepted for third-party content, whether incorporated in or linked to this blog; or for unintentional error and inaccuracy. The blog author may have, or intend to change, a personal position in any stock or other kind of investment mentioned.

Tuesday, September 16, 2008

Bonds to crash?

The Fed may lower its funds rate in the short term, but Jim in San Marcos is predicting steep rises in worldwide interest rates and (therefore) a sell0ff in suddenly-very-uncompetitive bonds.

4 comments:

NMMM.NU said...

I believe bonds will not crash.

Here's why:

Credit crunch side-effects:
Why US treasury bond may soar

James Higham said...

Do you go along with that, Sackers - that rates will rise steeply?

AntiCitizenOne said...

With the spread high, interest rates will be lower, so real borrowing costs do not increase too much.

IMHO of course.

SACKERSON said...

Thanks, all: I struggle with this issue in my next post.