On interest rates and the carrying costs of "speculative assets."
The usual suspects (commodities, foreign markets, the greenback) are getting hit--and of course the cost of holding these speculative assets has been on the rise for two months now via the US Treasury complex which "sets the standard for all interest rates" and for risk in general. The problem of course comes "should US Treasuries themselves be considered a risk asset." As a "fundamentalist" i resort to "an economist" and he and only he will tell me "how is the economy actually doing." Needless to say "if the economy is growing at only 2 percent for the forseeable future" I can certainly understand the sell off in our "meek 3." A sell off in treasuries as we have had however would appear to be precisely the "the wrong thing" in the sense that "a lack of recovery benefits the Treasury complex the most." Unless of course it doesn't...
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