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Message:: [QUOTE="V. Kurt Bellman, post: 2536621, member: 71723"]Limbo Rock. "How looooow can you goooo?" Hopefully lots and lots lower. BTW, the entire original purpose of the Fed's Open Market Committee is to "manipulate" short-term interest rates. It's why they exist. The impact on other asset classes is secondary and caused by market supply and demand, with the facts surrounding short-term rates creating or removing "opportunity costs" as a backup alternative. When short-term interest rates rise, even from "crazy low" up to "ridiculous low", every other option has more opportunity costs and will come under pressure. This fall in PM's is all about "pricing in" an expectation of 25 basis points in December and 50 basis points more by next December. Of course, the market will over-compensate, as it always does, and then it will find the real equilibrium eventually. I am a beliver in the precise opposite of the Perfect Market Theory. I believe markets nearly ALWAYS get it wrong.[/QUOTE]