Mareseatoatsanddoeseatoatsbutlittlelambseativy.

Tuesday, May 24, 2005

Rates: swimming in deep waters.

"It may just be a confluence of all these. But many economists are concluding that, in a world of rising savings and cheap money, returns on Treasury bond investments may simply be the best of a bad bunch."
GMB: Which would make I-bonds an easy entry.
But the underlying reasons examined here are a cautionary tale. Basically, nobody has clue, not really.

1 comment:

gberke said...

Interesting. And that "quality" called Treasuries are those things Bush calls "just a bunch of IOU's"
(When he used the word "crusade" early on we thought, what a maroon! Doesn't he know that's a sensitive word? He really doesn't mean that!)
Do we really have to honor our debt to non Christian nations? nations which try to hurt us?
In a Bush depression, where does one put money?
But the details aren't right:
The feds a tweaking rates, at a rate long broadcast, to contain inflation. Their last take: inflation is contained, we can slow the tweaking.
Unfair trade practices? who know what real news Bush was trying to cover on a slow day on Jackson. Or what lunatic fringe group he was playing to.
There are no "rampant" inflation fears.
Equities have not "topped"
But you have a strong case on "Easy Al and The Great Big Conundrum"