Doesnt the home buyer market HAVE TO dry up sooner or later? Buyers are not unlimited... its gonna happen either sooner or later. Then what? SHORT HOME BUILDERS peace axeman
People use the term "manufacture deflation". That sector are sure in deflation. Price in some service sector are down too. Hope they don't spread out.
Anyone else skeptical fed can control long end? Bulls use WWII as example but bond market today is infinitely more complex in size and scope. Also large portion of activity is foreigners (kind of hard for the Fed to control them isnt it?)
The Fed does one thing with one hand, then does another with the other. I am looking to see the (reverse) REPO situation tomorrow... nitro
Here is a very nice display of the yield-curve: http://stockcharts.com/charts/YieldCurve.html regards Bernd Kuerbs
"15:13 ET FOMC Minutes The May FOMC minutes reveal the Fed's concerns regarding disinflation risk as the committee saw higher risk given the level of excess industrial capacity. The disinflation concerns were softened by the weak dollar (higher import costs) as the tax cuts and low interest rates provided impetus for a stronger economy. The uncertainty surrounded the timing and severity of an upturn was the chief economic concern given the lack of business confidence which continues to restrain investment. As opposed to yesterday's policy dissent (Parry) in favor of a stronger ease the May discussion included two members who preferred a balanced directive rather than the weakness tied to disinflation risk. " nitro
http://www.thestreet.com/_mktw/markets/matthewgoldstein/10096071.html http://www.thestreet.com/_mktw/markets/matthewgoldstein/10096671.html