|
sc ks | The Fed cut interest rates but somebody forgot to tell the Interest rates.
This is a friendly reminder that the Fed doesn't control interest rates except a little on the short end. Mortgage type debt is driven by growth +inflation expectations. The bond holders just watched their currency lose 1/4 if its value in 4 years and government deficits ballooned and haven't come back down. So why would I loan $ for 10-30 years when I know it's likely going to buy less when I get it back? That's what the market is waking up to. Interesting times. | |
|
Interest rates
