Interest Rates Will Not Keep Rising

There is a common perception that when the Fed finally starts increasing interest rates that a new cycle will be created that will ultimately pave the path to much higher interest rates. The problem with that logic is that it is inconsistent with previous cycles and, in particular, it does not adequately address real concerns regarding the sustainability of the current recovery and its dependency on leverage. Mr. King provides a very interesting analysis that the financial markets should be thinking NOT just about near-term increases in interest rates, but also reductions in interest rates in 2005. READ