Re: The Gap.... by: willjacobs101 08/09/05 03:58 am Msg: 74574 of 74578
<< Longs are in for a rough ride. >>
Now that China no longer feels it necessary to buy U.S. debt to protect its economic growth, the interest rate "conundrum" bubble has been pricked. Rates are already beginning to move higher to reflect inflation expectations.
With prices moving up and strong inflation pressures in the pipeline, the Fed has no choice but to continue tightening monetary policies.