Zeev's Turnips Patch-No Politics (ZEEV)

[duper_man]

"loan demand is not there"

Well I don't have real evidence that this is hapenning. I am only going by what I read myself. If we are in a recovery then demand for capital should increase which inturn should lift interest rates. That part makes sense. But if we are not in a real recovery, how can you explain the rise in log-term treasury rates? Is it fear of the deficit spiraling out of control?

I'll tell you one thing that stinks for me is that in a recovery money comes out of bonds and goes into stocks. But since the sudden ramp in rates in June we have seen little movement in the S&P. The s&p should have ran up and not been stock in a range during this time. That's the part that kept me bearish on stocks in june and july.