Subject: Re: Control Panel: Market front-running the Fed agai
Savers who like to keep significant liquidity (cash and short-term Treasuries) in banks and money markets will see interest income decline. We have already been through this twice since 2008. It's worth considering an extended bond ladder. If interest rates drop the value of the existing bonds will increase and they can be sold. It's normal for bond yields to fall during a recession which drives bond prices up at the same time that stock prices drop.

The ability to sell the bonds will depend on them continuing to provide a flight to safety. That perception of safety depends on continued faith in the government, a government whose leader you recently referred to as having the style of The Godfather. IMO it's time to re-evaluate just how safe an investment US Gov't bonds are, as well as other truisms such as when rates go down employment goes up and the economy improves. Base assumptions for these truisms may no longer be the same. A paradigm shift may be underway. Be careful of assuming bonds are safe.

IP