They started at 3 at the beginning of the year. Anybody looking for rates to go straight up has been completely confounded by this. A lot of different guesses as to why you would see the bond market still in a situation with the tenyear, below 2. 5 . Well talk a lot about that today. Central banks will be in his words, exceedingly on shortterm Interest Rates as markets emerge from the liquidity trap. He made the case for what he is calling the new neutral on cnbc yesterday. I dont think the worlds upside down. I think the world is pricing in and coming to grips with the fact that post the moment and post five years worth of healing in the economy and in the Financial Markets and in the banking system, that were on the cusp of emerging from a liquidity trap and that the fed and other Central Banks around the world are going to be exceedingly low on shortterm Interest Rates. Thats a brand new regime. We are calling it here the new neutral. Well be talking more about the new neutral with
(image) As promised, here are all my predictions in one place. I've written a brief overview of each as well. Predictions 2012: #1 – On Twitter and Media Twitter will become a force as a media company, not just a platform for others' media. To do so, it will improve its #Discover feature and roll out…