What I posted 4 days ago below has now proven 100% correct today. The fed lowering rates to zero has been disastrous. I wish someone had read my earlier post.

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outsourci...@yahoo.com

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Mar 16, 2020, 2:08:13 AM3/16/20
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I had just posted 4 days ago the disastrous policy of the fed to lower interest rates by 50 basis points. I had specifically mentioned how delicate the matter is of interest rates and how simply lowering rates to boost the economy doesn't always work. Sometimes it can be counterproductive especially when rates are already at historic lows. (Please read my post of 4 days ago just below this post).
Now the fed has really made matters worse by making the interest rate zero.
I suspect that today there is massive overleveraging on US BONDS (much like the earlier massive overleveraging on mortgage bonds which eventually led to the 2008 worldwide financial crisis).
This is why there is going to be a collapse of the markets as the fed lowers interest rates from earlier very low levels. There is a fine line the fed should not have crossed for the US BONDS. Now for the 30 year bonds I believe the ideal rate for the very long term should be between 2 to 2..5%. However in the short term till the crisis could get resolved maybe 1.5 to 1.8% could even be understood and not been bad. But to go below 1.5% was disastrous. And for the ten year yield to go below one percent. It should at the minimum be at about .75 to .8%.
And the 30 year bond simply should never have gone below 1% even under such trying circumstances regarding the panic of the corona virus.
Let us hope sanity returns soon.
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