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:

  1. NMMM.NU16 September 2008 at 09:26

    I believe bonds will not crash.

    Here's why:

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

    ReplyDelete
  2. James Higham16 September 2008 at 09:39

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

    ReplyDelete
  3. AntiCitizenOne16 September 2008 at 13:34

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

    IMHO of course.

    ReplyDelete
  4. Sackerson16 September 2008 at 14:17

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

    ReplyDelete

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