After a pretty good shove higher around midday the markets gave most of there gains back. As I alluded in the pervious post the curve continues to steepen which is what I think the fed wants. They know that rates where to low for too long in 2003 and were raised at much slower pace than necessary. Thus, the out of control environment we got last year. More leverage of companies and bad mortgages. I am encouraged that the fed is being vigilant on inflation and tougher on the financial community. There are tons of HFs who are amp'd up to take advantage and get ahead of the next easing cycle which only put us back where were a couple of months ago. Perhaps a minsky moment lies ahead.
http://www.iimagazine.com/article.aspx?articleID=1234217
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