Two years ago the Murdoch press was running their own brand of DIY economic forecasting, the editorial of the WSJ was warning readers to lock up their daughters,
The surge in the 10-year note is especially notable because its rate helps to determine mortgage lending rates. The Fed is desperate to keep mortgage rates low to reflate the housing market, and last week it promised to inject hundreds of billions of dollars more in this effort. This week the bond vigilantes are showing what they think of that offer, bidding up yields even higher. It's not going too far to say we are watching a showdown between Fed Chairman Ben Bernanke and bond investors, otherwise known as the financial markets. When in doubt, bet on the markets.
Wise words indeed. Now that that self appointed bastion of free markets has become a paysite let's dump the WSJ for
Bloomberg,
Next week, it will be the two-year anniversary of the collapse of Lehman Brothers Holdings Inc. Sadly, the bond market suggests the investment community has learned none of the lessons of the misguided adventures of recent years that prompted the biggest bankruptcy in history.
Doesn't make sense - the failure of the stimulus was that it was insufficient. This has been the
argument of
Bank of England policy maker Adam Posen’s 11-month push for more stimulus is now shaping the debate among officials as they consider whether the U.K. needs more quantitative easing to fight the danger of Europe’s crisis.
With no policy maker seeking an interest-rate increase after Spencer Dale and Martin Weale switched votes, the discussion on the Monetary Policy Committee has shifted toward Posen’s agenda. He has pushed since October to increase the bank’s 200 billion-pound ($261 billion) bond-purchase plan.
