Since interest rates trades like a commodity, he is absolutely right about the wall, like commodities, interest rates are priced at the margins of supply and demand. As for the deficit in 2004, I doubt it will be that big, the economy should be kn a shallow recovery at least, if politicians have their way, maybe even a robust one (and paying the piper in 2005). It is election year after all. Asian markets are being hit hard tonight. Tokyo, Seoul, Taiwan and Singapore, all down 2.5%
Zeev