Not Everyone is Cheering Lower Rates

In the New York Times, March 29, 2008, Benjamin Tobias was quoted in the article Not Everyone is Cheering Lower Rates by Conrad De Aenlle.  Ben foreshadowed that lower interest rates help debt-heavy homeowners and businesses today but may fuel inflation tomorrow.  “I think we’re going in a bad direction on inflation.  Double-digit rates are in our future…”  One way to protect against inflation is selling longer-term bonds.  Ben warned “…you don’t want to be locked into something in the low single digits.”

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