Stick to the point. The fed will not raise short rates largely because of the damage it will do to the long end, jeapordizing their holdings and the whole mortgage market. Now quit being so obtuse or I'm gonna go to Facebook!
The Federal Reserve raised the short-term rate from 1% in 2003 to 5.25% by 2006-Where was the damage to the intermediate to long-term part of the curve? Didn't happen-Do you know why? If you don't know this basic concept-then your going to be in for a really fugly ride going forward.