Tuesday, September 18, 2007

A Prediction!

Given that Bernanke has seen fit to cut rates by a full 50 beeps (yarr, a bond trader be I!), I will make a prediction.

(The completely irrelevant goal of) parity will be reached on Friday's close.

I might as well get started on the advice of a master:
The experience of being proven completely wrong is salutary. No economist should be denied it and none are.
--John Kenneth Galbraith

I'm not sure how I feel about the rate cut itself. I doubt I would have gone so far. It certainly relieves the pressure for Canada to cut, though. I'd bet on the Canadian rate being up 25bps by Christmas.

EDIT: Fixed, sorry.

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