You just proved that you don’t know what you are talking about. If Bernanke doesn’t begin to raise rates sometime in the next year or so, then bond market will do it for him at the cost of the housing market and economy in general. Sorry, but bondholders and creditors like to get paid or they get really upset.
I never argue that the bond holder wants to get paid. They do and they also predict higher inflation, which will case rate increase. Inflation is the opposite of recession btw. Please tell me what the bond market expect in 2005 when FFR were around 5.5%? Don’t you remember the flatten yield curve? Don’t you remember every starting to say we just peaked and we’re heading for a recession? What did the Fed do when things start to really slow down? Show me your data that support your “theory” that rates goes up during a slow down and I’ll concede that I don’t know anything.
