UnThreaded | Threaded | Whole Thread (19) | Ignore Thread Prev | Next
Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35930  
Subject: Re: Implications of Fed pause Date: 8/13/2006 9:05 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0

Your original source is the Wall Street Journal, which consistently shows little understanding of real economic forces.

I honestly don't don't where interest rates are going, and have stuck to locking in whatever rates are best for my long term laddering, instead of waiting for rates to go up.

If the economy slows, even if that reduces inflation (more likely CPI-U than real inflation, since it overweights discretionaries), that lowers tax receipts and increases federal deficit and personal borrowing (to make ends meet with weaker job market). Long term rates are less dependent on the Fed and more on other factors in supply and demand.

I wouldn't be surprised at a slight decline in long term interest rates, but there isn't the slightest sign the politiicians will do anything beyond faith-based (i.e., wishful thinking) initiatives to solve the deficit. And, gas prices will continue up over the long haul (lots of speculative money in current prices, so decline come fall not unlikely).
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (19) | Ignore Thread Prev | Next


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.