bond market vigilantes

I see that Paul Krugman has shifted his rhetoric in a recent post on British government economic policy. Let me explain how in this post so that I can make a point as to how bond market vigilantes actually work.

This is a good interview with Kyle Bass because it cuts to the heart of the matter. If you are a partisan in the Bass debate on Japan, you can see him as being either correct or incorrect. Now, I have covered this before and I have stressed…

Long-term interest rates are a series of future short-term rates. That necessarily means that an interest-rate targetting central bank exerts the dominant influence not just on the short end in its currency area, but across the yield curve.…

The key to Spain's turning the corner as 2013 begins is the housing market. This takes on increasing importance given the reprieve in crisis interest rates. House prices are still falling and the economy is contracting despite the…

Bill Gross has admitted that he has started buying Spanish and Italian debt. That's quite a turnaround given he had been saying earlier that he wouldn't touch their sovereign debt with a ten-foot barge pole. So the question is why. And the…

I don't expect any response from Paul Krugman, Alex Tabarrok or Tyler Cowen on this but they know who I am and read my articles from time to time. I am going to add my voice to a debate they have been having in the blogosphere on debt,…

If real returns remain low, it will skew capital investment. When recession hits, debtors backing those losing investments will be caught out and forced to delever aggressively as resource misallocation becomes evident.

For ideological reasons, one might believe that limiting or reducing government is better. However, it does not follow that doing so is a painless exercise.

Marshall Auerback and Rob Paenteau explain a method the Fed might use to target interest rates further out on the yield curve.

I spoke to Tadas Viskanta of Abnormal Returns on StockTwits TV about a lot of different issues this past week. We discussed commodities, bond market, QE, tech stocks, and a lot more. Here's the video below.