Don Luskin links to this warning about long-term interest rates.
The Fed, as the Times article points out, is plainly determined that this time nothing will get in the way (as 9/11 and Enron did in the recent past) of economic recovery. Therefore the Fed has been cutting rates and expanding the money supply. The desired results are economic expansion, which is already occurring, and a stock-market rally, which seems to be happening in fits and starts. But costs of the Fed’s manipulation include a weaker dollar, and an overvalued bond market that will collapse once it becomes clear that the Fed has finished cutting rates. Buy puts.
Well I guess we will find out.