Reply #56: as for a raise or a lowering of the overnight rate... [View All]

[ozymandius]

Not sure. I think there may be more impact on tax codes than anything - in the long run. We could also see accelerated ballooning of the federal deficit.

On the psychology of the bond market: the market tends to be afraid of its own shadow. Typical behavior in the relationship between stocks and bonds is that they work contrary to each other. Stocks do well, bonds sink - that kind of stuff.

My ideas are very general and sketchy rather than specific to describe the dynamics in play here.