elwind45

Will We See Inflation or Deflation?

Why worry about the bond market? Paulson must do everything in his power to hold bond market together. There is no way Treasury can allow higher rates for the distant future. Paulson turning his back on Treasury Bonds would be suicide! Hasn't anyone wondered who the fool is to be a long bond (any Treasury note) buyer at these levels? The rub comes from the yield curve. The steepness of curve is very positive for banks. A no-brainer? Except sugar daddy is buying up Treasuries to drive down yields to protect mortgages, and cutting into bank profits. Treasury is fighting banks. I believe that the Fed must view any future growth as inflationary and move to stop it. Will Treasury end up fighting the Fed and its member banks to keep rates artifically low?