[quote=SD Realtor] IMO those will not happen for awhile yet. I am not a bond market expert though so I don’t know. [/quote]
Lucky for you, I have considerable knowledge of the bond market and fed policy. All I can say is trust me…the bond market is a bubble just waiting to burst. Back in Q1 when the Feds finally realized that demand for US treasuries was weakening, they took drastic measures of last resort…measures that Bernanke was hoping to avoid. Which is to say, the Feds started buying US treasuries in what some might describe as a last ditch panic effort to avoid a depression. So far, Bernanke’s actions seem to be working in the short term, as buying treasuries has had the effect of lowering mortgage rates to record low levels – and as a result, has created a real estate buying frenzy among investors and first timers.
The problem for the Fed, and they are openly discussing it now, is in order to avoid a depression, they have created inflation, and potentially hyper inflation.
