Letter: Watching a Snake Eating its Own Tail
Mr Rawles, I’m reminded today of a line from your Patriots series describing the crunch as “like watching a snake eating its own tail.” Today’s economic news is exactly that– Terror of Ebola and rising interest rates forces investors to dump their dollars into treasuries, artificially lowering interest rates and creating a new housing bubble. This fear in turn leads to a “reconsideration” of raising interest rates and ending bond purchases by the Fed. In the interest of moderation, I intend to withdraw the majority of my 401k Monday and pay off the mortgage on my retreat, leaving only enough …