The ten year drops below 5% and it is starting to get pretty certain that the Feds are done for now. For the past two years, when we got this close to a Fed meeting, we've never had such a reading in the future's market. This means that any rate hike by the Feds would be a huge negative with disastrous consequences and Bernanke knows this. My bet is that Feds will pause in August and actually lower rates in October, right before the elections. Bernanke wants the soft landing and if he gets it, look out above. All the Armageddon theories by bears (and pretty much every media out there) would go out the window.
This entry was posted
on Friday, July 28, 2006 at 7:53 AM.
