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To: Pelham

“Try telling that nonsense to a bond trader. Which you quite evidently are not”

Spent my career trading.


48 posted on 11/25/2014 6:19:03 AM PST by aMorePerfectUnion ( "I didn't leave the Central Oligarchy Party. It left me." - Ronaldus Maximus)
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To: aMorePerfectUnion

A trader should know that the Fed can set short rates wherever it wants but the market sets long ones. Bond vigilantes will demand an inflation premium and push long rates above the rate of inflation. This happened in dramatic fashion during the Carter years and less so under Clinton.


50 posted on 11/25/2014 8:33:34 AM PST by Pelham (Lawbreaking foreigners get rewarded with amnesty. Laws are for suckers.)
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