RE:RiskMarketsense - YEP
As I mentioned in my earlier post, if the recession is severe enough, Central Banks will have no choice but to lower rates to pull out of the tailspin. After all, one of the principal reasons the very rich set up the Fed in the first place was to protect their interests and get richer through increasing the amplitude of normal economic cycles. In this scenario of declining interst rates, one can make money holding bonds while equities are losing value. This is precisely what I did during the Great Recession.
Now to your other point. With the US Government running about a 2 trillion dollar annual deficit for at least the next 10 years, this will place a high demand (read competition) for money which means high interest rates. So yes, after the recession I am predicting we would see interest rates climbing back up and stay higher than we have seen for the last 15 years or so. Another way to say the same thing is that these outsized annual deficits are inflationary and this means higher interest rates to combat the inflation. Frankly, monetary and fiscal policy in the US are working at odds as opposed to being mutually supportive. This is not a good thing.