Archived Blog Post: January 26, 2004

As Fed Holds Rates Down, Investors Face Tough Choice: "The result is that the gulf between short-term and long-term interest rates is extraordinarily wide. And that phenomenon feeds on itself: A slick way to make money today, if you're a professional bond investor, is to borrow short-term at 1% and invest the money in long-term bonds that pay 4%. Your return: 3%."