krug: Let's ask, instead, how much rates will rise if and when normal conditions of supply and demand resume in the bond market.
My calculations keep leading me to a 10-year bond rate of 7 percent, and a mortgage rate of 8.5 percent ? with a substantial possibility that the numbers will be even higher. Current rates are about 4.3 and 5.8 percent, respectively; you can see why the I.M.F. is worried about "financial market disruption."

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Seven were arrested in Manchester, north-west England, and the others elsewhere in the English north and Midlands.
Police did not say whether any explosives had been seized in the operation, which involved 400 officers from five forces, including the anti-terrorist branch of London's Metropolitan Police.

The Guardian, however, said "counter-terrorist sources last night appeared to play down the significance of the operation, making no suggestion that police or security services had foiled a bomb plot..."

The seizure of the ammonium nitrate fertilizer - a component of many bomb attacks, including the October 2002 explosions that killed 202 people on the Indonesian island of Bali - spurred intense media speculation about a plot to bomb civilian targets in Britain. Police have released no details of the case against the men.