Loading ...Mr. Copper – “Will the Fed do it again? Raise rates to 21% to save the dollar? I doubt it. The last time they did that it was more affordable for the public to tolerate.”
I agree with you on this, but I also think the biggest reason they can’t is the level of Gov’t debt and their ability to service it. They also need a hearty R.E., stock market, and an economy that generates tax revenue. Rates at those levels would destroy both. I agree with Bill Gross, 3% rates are probably as much as the economy can handle and maybe even 2.5%. It will be interesting to see what happens when the 10 yr. breaches 2.5%. The SM will probably give us a hint.
Maddog – agree with the Adens and hopefully they are right. 6 more years is great if we can get annual moves in pm’s of 20-30%, but if it takes 6 more years to get to $2500, none of this will have been worth it, especially if inflation stays high.