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Pink picks
FT Alphaville —
Comment, analysis and other offerings from Wednesday’s FT, Pink picks illustration Martin Wolf: Rising government bond rates prove policy works The jump in bond rates is a desirable normalisation after a panic. Investors rushed into the dollar and government bonds. Now they are rushing out again. Welcome to the giddy world of financial markets. How Beijing kept its grip on power Minxin Pei,a senior associate at the Carnegie Endowment for International Peace in Washington, writes how The Chinese Communist party was practically written off after its army crushed ...
links for 2009-06-03
Economist's View —
... The threat of political meddling in GM - Brendan Nyhan
Rising government bond rates prove policy works - Martin Wolf ...
"The Bond War"
Economist's View —
... Krugman and his fellow travelers couldn't disagree
more. Far from being a sign of failure and impending disaster, they say, the
rising bond yields actually signal success and impending improvement. ...
Clear-headed as always, Martin Wolf of the Financial Times notes: "The jump in bond rates is a desirable normalisation after a panic.
Investors rushed into the dollar and government bonds. Now they are rushing out
again. Welcome to the giddy world of financial markets." This line of argument
makes sense... ...
Niall Ferguson fights back
FT Alphaville —
... ), but a new one is definitely brewing in the shape of the tit-for-tat currently raging between Harvard’s Niall Fegurson and Princetonian Nobel Laureate Paul Krugman, over the issue of fiscal deficits and rising bond yields. The central premise: are they deadly, tolerable, or even positive? The FT’s Martin Wolf summed up the affair in his column on Tuesday as follows (our emphasis): Last week, the Financial Times carried two columns arguing that the US fiscal path was unsustainable, one by Stanford University’s John Taylor and the other by the Harvard historian Niall ...
No Laughing Matter
Streetwise Professor —
... Other data support this. The differential between nominal yields on Treasuries and yields on inflation protected Treasuries (TIPS) are widening, indicating increased inflation expectations. But, importantly, TIPS yields themselves are not rising. That is, real interest rates are not rising, as would be expected as the real economy strengthens. This is important, and has gone largely unremarked. Indeed, some advocates of quantitative easing and expansionary fiscal policies, such as Martin Wolf , actually view the decline in TIPS yields as a favorable sign. Wolf says this ...
Maybe the talk of run away inflation is just that, talk.
FinanceProfessor.com —
... premium that comes with Treasuries is reducing. Evidence of this reduced premium can be seen looking at the VIX and in this this chart showing Treasuries vs corporates. Notice how the relative value of treasuries peaked during the worse of the uncertainty. This flight to quality in bad times is normal and seeing it now ebb might well be a signal that the economy is returning to some semblance of normalcy and not a signal of higher inflation. FT.com / Columnists / Martin Wolf - Rising government bond rates prove policy ...
How does the greatest bull run of all times end?
European Tribune —
... , or as a welcome return to normality as panic buying of government bonds recedes and money starts flowing again to other productive uses. The debate is not only ...
(Small) Interest Rate Increases Are Good News, Not Bad News (Washington Post Crashed-and-Burned-and-Smoking Watch)
J. Bradford DeLong's Grasping Reality with All Eight Tentacles —
... FT.com / Columnists / Martin Wolf - Rising government bond rates prove policy works: Is the US... on the road to fiscal Armageddon? Are recent jumps in government bond rates proof that investors are worried about fiscal prospects? My answers to these questions are: No and No.... [T]here are... right now and strong reasons for welcoming recent moves in the bond markets.... ...
links for 2009-06-18
J. Bradford DeLong's Grasping Reality with All Eight Tentacles —
... Matthew Yglesias: Christina Romer on the Health Tax Exclusion
Martin Wolf: Rising government bond rates prove policy works ...
