With demand still weak, there's room to cut rates in the first half of next year. That'll keep yields around 4 percent for 10-year gilts.

Demand is vastly outstripping supply. It's not surprising that some of the dealers are going to the DMO because it's difficult to make a market in these conditions.

We're looking at another 25 percent (cut) next year.

Our official forecast is they'll cut them(rates) twice. They'll cut them in the first quarter, they'll cut them in the second quarter.

Lower rates should stimulate other consumer areas. We think building materials, as a result of continuing housing demand going forward, should do well. We actually think we'll see more demand for autos.

Greenspan is not going to wake up in June of next year and say 'I should have really raised rates more aggressively.' His legacy of price stability is pretty secure so I don't think the last six months of his tenure will destroy it for him.