Tuesday, October 2, 2007
The difficult job of balancing growth and inflation
Recession fears spur rally in U.S. bonds
For the first time since 1995, the U.S. bond market is rallying on the assumption that the Federal Reserve has relegated inflation to a secondary concern and now views a recession as a much greater threat to the economy.... ...The bond market's unusual buoyancy is a consequence of the worst U.S. housing slump in 16 years, a slowing rate of inflation and the seventh weekly decline in short-term corporate lending.
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inbreda says:
Everything is panning out just like it says it would in the book “the final crash”