US Gub-ment Bonds....

Discussion in 'Economics' started by gugaplex, Mar 21, 2006.

  1. gugaplex


    How can U.S. rates be so low when commodity prices keep soaring?

    Because under-developed countries are buying our bonds as a "safe-haven" compared to their own nation's investments.

    Since these countries are booming, they are pouring cash into our bonds and supporting the low rates we see today.

    This will continue, but peter-off after 3-4 years. A bull market in U.S. stocks will be prevalent during this period.

    The scary part is what happens thereafter?