Fed puzzled by rising yield curve

[buster]

http://www.reuters.com/article/ousiv/idUSTRE54U1NZ20090531?pageNumber=1&virtualBrandChannel=10531

Puzzled? haaa it's going to be interesting to see whether the Fed can manage this going forward. What Schiff has been saying all along is starting to come into fruition.

The opposing view point suggests a rapid recovery. I don't agree with that.

 

[Steve S]

When poop hits the fan it splatters all over. I really doubt it matters to then. They have a mission that doesn't include us. Seems to tie in with the surprised word used so often about the problems arising.

 

[Drew99GT]

If they're puzzled why US bond interest rates are rising, when the US government is burrowing and printing money and record levels, and it's creditors are worried about our credit worthiness, then they must really have their heads up their asses!

Perhaps Bernakne and company should open a credit card account and not pay the bill one month and see what happens to the interest rate.

Idiots.

 

[buster]

Can they really be that naive?

 

[StevieC]

It's all a game...

 

[buster]

http://news.yahoo.com/s/ap/20090531/ap_on_go_ca_st_pe/as_geithner_china

 

[Gary Allan]

I keep waiting for just one of those thousand points of light ...

 

[andyd]

Gary, is that point hitched to an oncoming train?

 

[Bowser]

The press and media is always looking for the new bogeyman...

Just as investors sought a safe haven in US Treasuries during the market melt down last fall, investors are now selling the same treasuries and redistributing the money in other safe assets along with riskier equities. The interest rate on the 10yr US Treasury Note has risen from a record low of 2% in December to 3.5% now reflecting the current sell off. The 10 yr. Treasury is still below it's historical interest rate.

The Chinese still claim that US Treasuries are the best game in town. Only time will tell if the Fed's quantitative easing program will work keeping both short term and mortgage interest rates low during this recession.

Perma-bear Peter Schiff is predicting Gold above $1500 oz with severe inflation and a stock market in the toilet. His prediction may come true in couple years if current government spending and monetary policy continues at its present course.

 

[jsharp]

Originally Posted By: buster
Can they really be that naive?


No, but they can certainly be that dishonest.

 

[Tempest]

Originally Posted By: buster
http://news.yahoo.com/s/ap/20090531/ap_on_go_ca_st_pe/as_geithner_china


http://www.bloomberg.com/apps/news?pid=20601087&sid=afg8MXnVGSGo&refer=worldwide
Quote:
“It will be helpful if Geithner can show us some arithmetic,”

 

[Tempest]

Originally Posted By: buster
Can they really be that naive?


They said the economy was just fine less than a year ago so...