Tuesday, May 16, 2006

Rates Will Go Higher Even if the Fed Pauses

Interest rates have plenty of room to move higher, even if the Fed actually stops increasing the funds rate. This is an interesting article from Safehaven.com

"We are crossing a critical threshold beyond which the U.S. government could begin to lose control over rising interest rates, and ultimately, the entire economy.

So I've invited our interest rate specialist, Michael Larson, to join me this morning to help me tell you about the consequences ... the dangers ... and the opportunities.

Trouble is, most people, even many experienced investors, don't really understand interest rates."



Anonymous Anonymous said...

The Fed lost control of the economy after the 1998 LTCM bailout. Mr. G caused all sorts of problems when he added to global liquidity problems caused by the BOJ's Zero Interest Rate Policy (ZIRP). The world is just realizing the damage the bailout of LTCM and the eventually the NASDAQ bubble bail out created.

Extreme risk takers must be let to fail or the free market economics touted by the GWB administration are not truly in play. This is a distortion of traditional market forces.

This world needs a good currency crisis. This time it will be ours.

OK, I'm done preaching.

Tuesday, May 16, 2006 10:02:00 PM  
Blogger Smart Grid blogger said...

read this too: FLASH: Coordinated Fed attack on housing: Bernanke sees cooling housing market... Greenspan Says Housing Boom Over

Friday, May 19, 2006 11:26:00 AM  
Anonymous Anonymous said...

Every human being must understand that the Federal Reserve IS inflation. The Federal Reserve was established in 1913 to create inflation and its secondary role is to manage the public’s inflation FEARS. Over the past 25 years, the Federal Reserve has done a fantastic job at both – inflation (money supply growth) has gone out of control and the public’s inflation fears have been well contained.

Saturday, May 20, 2006 5:15:00 PM  
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