In the very near term, Treasuries are faced with a lot of supply, which suggests a concession will have to be built into the market, but demand for safer securities is likely to remain high as we move toward the end of the month," said Robert Tipp, chief investment strategist at Prudential Investment Management's public fixed-income group.
Are There Reasonable Approaches to Fiscal Consolidation?
21 minutes ago
2 comments:
===================================
Every Thing About Forex
http://forex-4-world.blogspot.com
===================================
Every Thing About Adsense
http://adsense-4-world.blogspot.com
===================================
Free Softs
http://m-softs.blogspot.com
===================================
Free MoVieS
http://aflam-lk.blogspot.com
===================================
Free MoVieS , Games ,Softs
http://mixawy.201mb.com
===================================
Free MoVieS , Games ,Softs /vb
http://mixawy.201mb.com
===================================
Free MoVieS ,Videos, Games Online
http://mostafaalkadoom.rab7net.org/
===================================
CnDrLa
http://cndrla.co.cc/
===================================
CnDrLa Vb
http://cndrla.co.cc/vb
===================================
CnDrLa GaMes
http://cndrla.co.cc/games
==================================
My suspicion is we're going to hit bottom before too long, but that it's going to be a long hard recovery. We're having to borrow scads of money in order to prop up the economy but since the economy sucks people are buying treasuries. As the economy recovers you're going to have a flight from treasuries that will cause those interest rates to go up and that rise will create a drag on the economy.
Add to this that we need to get the savings rate up in the long run, but are needing to spend in the short run. Once we get the economy rolling a bit, people need to restore their savings, and that's going to put drag on the economy too.
Furthermore, everybody who's getting laid off and being driven into foreclosure or bankruptcy is going to be coming out of the worst of the economy with lousy credit scores. That will make banks less willing to lend to them (or lend at even higher rates) and further limit potential growth.
So I suspect we'll stabilize the patient in the next year, but it's going to be a long time in physical therapy before it can walk again, much less run. This metaphor abuse brought to you by the letter Z.
Post a Comment