Cycle Trading

[Duma]

Santelli certainly started a fire storm yday. But history is on his side. It took several years for interest rates to hit 15% back in the 80's, so it should be no surprise to anyone that it will take more time now. Finally, I think people are starting to wake up to the fact that 25% of our revenue goes to pay interest and that % is rising each month. With the historic losses (think Fed and banks) of anyone holding bonds who is their right mind will buy anymore. I can only think of two, the FED because they can't go broke and banks because they can't go broke, the FED will bail them out. It is all coming down before our eyes.

I have a question concerning the interest curves. MMF and 6month or less notes interest rates have seemed to found a ceiling at around 5.6%. So I assume this is because of the current FED rate. Does anyone know if this is correct. I would also assume that for the present 5.6% would represent a ceiling for all the other bonds, but no clue if this is correct either.