ONLY
Only a MARKET CRASH can save the Fed’s plan?
Low real interest rates need low yield on bonds. As foreign buyers dry up, who will buy the bonds?….. perhaps the Fed needs to scare cash out of stocks and into the ’safe haven’ of bonds to shore up their plan to reanimate the crushed consumer economy. A rising stock market would draw cash away from bonds and put pressure on interest rates just as the economy is flat-lining. What would YOU do to keep the cash flowing into bonds at pathetic low yields? TLT (20 year Treasury fund chart) finance.yahoo.com Research on Bonds and Bond Yield curve www.investopedia.com Excellent explanation of Bonds and how they affect interest rates useconomy.about.com Article on China shifting their bonds to shorter term… www.tehrantimes.com