Comments on: Prediction Update : US Yields stayed low https://twentythirdfloor.co.za/2012/02/29/prediction-update-us-yields-stayed-low/ Perspectives Mon, 12 Mar 2012 12:31:10 +0000 hourly 1 https://wordpress.org/?v=6.9.1 By: David Kirk https://twentythirdfloor.co.za/2012/02/29/prediction-update-us-yields-stayed-low/comment-page-1/#comment-17294 Mon, 12 Mar 2012 12:31:10 +0000 http://twentythirdfloor.co.za/?p=1718#comment-17294 In reply to Piet.

Interest rates in countries with their own currencies and limited risk of default are ALL low. This isn’t about the US Fed, this is about a liquidity trap created through massive exogenous decrease in private investment driving down equilibrium rates to be negative, which markets can’t work with.
What is this natural mechanism that wants a higher interest rate?

]]> By: Piet https://twentythirdfloor.co.za/2012/02/29/prediction-update-us-yields-stayed-low/comment-page-1/#comment-17286 Thu, 08 Mar 2012 08:31:31 +0000 http://twentythirdfloor.co.za/?p=1718#comment-17286 Whats happening is that the Fed is suppressing rates and distorting the market. Natural mechanisms which would spur increases in rates are not being allowed to function. This sends the wrong signal and numbs people to the significant risks that are out there. This is playing with fire.

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