Bond Outlook October 25th

Fortunately for investors, there is no urgency in deciding which scenario is correct, as the Fed and just about everyone else sees the need to wait and see, especially to understand the full effect of the deflation of the housing bubble. There is universal agreement that the housing effect is negative, but by how much? One view, expressed this week in the FT, for example, considers how the housing markets in the UK, Australia and Holland made soft landings without damage to their economies.