Replies to post #122354 on Zeev's Turnips Patch-No Politics (ZEEV)

[jbennett53]

Zeev, I wonder what is the amount of cash held by retirees of relatively modest means that is strictly in CDs? I also have wondered what the economic impact to the economy has resulted from the loss of earnings these folks have felt as they roll their CDs into new at far lower rates?

[phineas gage]

Yes. This is the point in the game where he must show his hand. A no ease, or a tightening would confirm the economic strength the foreseen by equities. Bonds would be crushed, foreigners happy though, as the $ would firm. In this, the market would trend higher holding the major supports, but not the trendline. $BP drop to say 40 at most, but real quick. The 50bp scenario ends up going pop by the end of the summer, and the lows are not safe. IMHO.