I couldn’t disagree more. If cash goes to treasuries prices rise and yields go down. Rates are coming down and will continue to fall in the 2008. The equity markets agree which is why Financials have rallied over the last couple days because lower interest rates equal future profits for lenders. The gov’t is going to bailout both the mortgage insurers (their stocks were up 30-70% today alone) and borrowers by forcing mortgage rates down and encouraging re-fi’s. They understand the greatest threat to both the US and world economy is the crumbling housing/mortgage market and they will take action especially in an election year. Don’t fight the Fed.