Replies to post #110915 on Biotech Values

[jbog]

10nisman,

I think the Fed will have to go to QE3, QE4 and so on. There are another motives that aren't being discussed.

1) For every 100 basis point increase in our interest rate increases our current deficit significantly (in the long run a 1% increase = $140B in deficit). To make matters worse I remember a huge amount of our current debt (70% to 80%) is in short term investment's (3 year duration or less).

2) The Fed's presence keeps the demand high. God forbid we see a low bid to cover auction.