Referendum on Obama?

" What's going on here is. I've talked about this before you can visualize. A a chart with -- There's the left side is. Short term interest rates which are very very very below 02. By. A quarter of 1%. The further out you go. On the on the maturities up to thirty year treasuries. You see the the curve go much higher the rates much higher so the curb when you -- that. Is a very. High yield curve it's very steep. From short term interest rates to long term interest rates and all this does -- you can see it. As clear as a bell the Fed is trying to do is keep interest rates low. On mortgages to try to get the housing market going the try to keep you wouldn't be out there in the system on the other hand they're trying to keep the interest rates high. To help the banking system recapitalize they're gonna be able to make a ton of money on those high interest rates when you go out further. So all of this is they're obviously saying we don't care about inflation. We are going up artificially trying to keep this short term interest rates low. And -- the long term interest rates go up. And inflation is common folks it is coming it's coming it's coming so what does the markets say about one inflation's going to be coming back. If you go out. And take a look at two -- by what the market bets on fed fund futures as it's called. They're looking out to the eight parole meeting. -- whoa what's that that six months from now. And they're saying that the chances of the Fed raising interest rates at the April meeting. Is. It was a little more than half now it's 48%. By their thinking. They'll raise rates by a quarter of -- percent less than half -- the market thinks will do that. In April of 2010. If you go out beyond that -- you start getting more in June more more people think into the raised they'll start raising rates in June but the April number has has some people betting that rates will go up then. -- meantime from the Federal Reserve's statement today it says we don't care about inflation. We're gonna keep interest rates really low for the consumer. We're gonna get that yield curve -- Steve of the banks can make a whole bunch of money. So that we don't have to actually bail amount directly but we're going to they ignore what's going on with inflation. And that the interest rates will go up the market is betting. Probably middle of next year so there's little the little -- on the on the fifth dead in what they are doing what they're calling. -- while much money they're gonna keep putting into the markets it will be a little bit less. But they're still putting a lot into the market to try to get this economy going. All right let me take a short break here -- start to and then go for one minute. What we come back. The election last night. The elections last night. What did it say. To you. Because one of the areas a lot of people are talking about is the Republican Party and whether or not. There is room for moderate Republicans or there's only room for conservative. Republicans. And where and that gradient between lieu of conservative and moderate does the Republican Party need to be. In order to win elections. He got a very close race in the New York mayor's race for a hundred million dollars Mayor Bloomberg barely one. I was I was surprised I was pleased but I was surprised. That says Chris Christie won the New Jersey governor's race. I thought that the mob. Was better than that. I. That corruption in politics in New Jersey is so pervasive. That they had it fixed for courtside. I thought the boxes would have changed. And and slowest and and had dead people voting. And I think they did. But what it says is Chris Christie yet despite all that against of its total. I was able to be Corzine. Virginia and on Virginia is pretty predictable the Republican was way ahead and he won by a big margin. But New York 23 you with the Democrat when --"