Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

Hike, like going back to 2% and even higher. By this time next year, or maybe in two years, after a feeble recovery, Asia is once more going to show on the horizon as a trouble spot, and if the rates are not back around 3% the Feds will have no ammo to counter such a debacle, with unemployment showing any signs of cresting, and the fact that current low interest rate are not inducing any demand for loans from industry, the feds needs to implant in the business community the concept (fear) that now is the time to borrow, tomorrow money will cost more. A shot over the bow of Industry's ship raising interest rates could do wonders.... As long as such a rise is not stifling (and in my estimate even Fed rates of 3.5% to 4% are not stifling), it will be , strangely as it sounds, stimulative. There might be some bellicose comments from the administration and congress, but that, IMTO, is the right thing to do.

Zeev