Global Investors Sending Giant Signal to U.S.: Please Borrow Money!

By: Thursday July 12, 2012 12:55 pm

The 10-year Treasury bond, the benchmark rate for the US in borrowing money, dipped to an all-time low yesterday of 1.459%. Treasury sold notes at that price at a $21 billion auction, amid high demand. Today it’s jumped back to an astronomical 1.48%. These numbers are outrageous. It shows both what a basket case the [...]

Corporate Profits Zooming as Job Growth Lags

By: Friday June 1, 2012 7:47 am

The terrible jobs report should be matched with another set of data to point out that this is the economy that corporate executives have wanted for a long time. Because they are not suffering in a time of weak demand. They’re actually thriving. Corporate profits are soaring. The chart above shows corporate profits as a [...]

Demand for US Debt Up, Inflation Down

By: Tuesday December 27, 2011 7:34 am

I’ve enjoyed the couple year-end reviews I’ve seen where political pundits look back at their own predictions and figure out what they got wrong. I only wish that economists would do the same. One of the standard opinions from many economists, especially those on the right, was that the US spending/debt load was unsustainable and [...]

ECB Senior Resignation Sends Stocks Tumbling

By: Friday September 9, 2011 12:58 pm

The stock market dropped about 2 1/2% today. Proof, proof that Obama’s Kenyan socialist jobs program is wrong for America! Actually, well, no. The main problem today appears to be the resignation of a senior official at the European Central Bank: The dramatic resignation of a senior European central banker sent stock markets plunging, amid [...]

Banks Plan to Pull Out of Treasuries as Hedge Against Debt Limit Default

By: Monday June 13, 2011 8:56 am

The notion propounded by “debt deniers” that a small default would ultimately be positive for the US economy has no basis in reality. Even a day-long default could have real long-term consequences for US borrowing. Here confidence does matter, and the people who set the rates for US debt through their willingness or reluctance to [...]

The Ridiculous Bargain of Infrastructure Spending

By: Monday October 4, 2010 7:30 am

Ezra Klein had a good column this weekend about the need to maximize infrastructure spending right now, when the materials and labor costs would be so low. In 2009, Congress passed the American Recovery and Reinvestment Act, known to its friends (and enemies) as the stimulus. Billions of dollars went to the Transportation Department to [...]

But No, We Have to Cut the Deficit Right Now

By: Thursday June 10, 2010 6:44 am

When you hear about the bond market, basically that means fund managers like Pimco. James Carville said he famously wants to be reincarnated as the bond market, because “You can intimidate everybody.” As it turns out, it’s the bond market who has stood down, to buy US Treasury bonds. After months of deriding U.S. Treasury [...]

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