Bond Vigilantes: Where Are They Now?

[Darkness]

I just wanted to repost this blog post from Paul Krugman:

A little over a month ago the newspapers were full of scare stories about interest rates. Debt Fears Send Rates Up, blared a headline in the WSJ. Ten-year rates had risen from 3.67 percent to 3.9 percent, and this was a signal of huge fears about US solvency. Time to slash spending now!

You might want to know that last Friday, the 10-year rate was … back where it started, at 3.69 percent. Somehow, the climbdown wasn’t news.

And what’s wonderful about this, from the point of view of the deficit scare-mongers, is that they can keep on doing it, even if there isn’t any actual upward trend: when interest rates rise, they can issue dire warnings, go silent when they drop, then go back to dire warnings as rates rise back to the previous level.

Nice work if you can get it.

 

[tumbleweed41]

Man, I am so disappointing.....you said Bong.....




As to the OP, it is not so easy to sensationalize good or moderate news.

 

[enchanted_one1975]

I noticed many of the talk show hosts that tell people not to invest in precious metals do this same thing. They boast about what a poor investment it is. When the price drops a few bucks they pat themselves on the back and toot their own whistle. The following week when the price goes up 5 times what it had dropped they just keep their mouth shut and hope nobody noticed.

 

[Darkness]

Man, I am so disappointing.....you said Bong.....




As to the OP, it is not so easy to sensationalize good or moderate news.

Sorry for the typo. :sorry1:

Can a moderator please fix it?

 

[Quagmire]

Sorry for the typo. :sorry1:

Can a moderator please fix it?

Do we have to?