Major disconnect between short(90d) and longterm(5y,10y,30y) rates. There is a huge long view expectation of the Fed making a cut (which I doubt will be soon). But it does revert to yield curve to a flat or normalized slope. In that case the Fed is being given room to raise rates even further in the future. We are expanding into the next economic (4yr) cycle. 2008 should bring a presidential campaign correction and then the rally in the fall into 2009 (in equities).
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