consumers,states,corporations,govts have issues so much debt over the last 3 years they could never service that debt if interest rates were at 5 6 7 %.So interest rates will never get there because we would cease too exist as a civilazation. Japan 10 years at 0 interest rates if you forgot.Imagine if everyone' home equity line had an 8 % interest rate on it right now.!!!!!!most everyone would be in bankrupcy court.
That has to be the best logic I have ever heard in my entire life! Yea Right.
If you use the same logic, then housing prices should have never been able to fall because homeowners would walk away.. It happened. Businesses would have never gone out of business, becuase of jobs.... Many are gone. Greece's interest rate would never go above the German rate.... Greece 11.3% , Germany 2.1% 10 Year.
Never say Never, IT will happen by Oct 31 2011. The Dow is in a long term head and sholders pattern. Where do you think the extra liquidity will come from? Bond holders selling bonds, to cover equity trades.