bond rout

All You Really Needed Was the Yield Curve

By |2019-08-12T18:14:30-04:00August 12th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It is absolutely amazing the lengths people will go to in order to deny the most straightforward and obvious explanation; to torture and twist plain evidence. That’s the thing about rationalizing, though. The narrative usually matters more than the facts. Take tax reform and interest rates. The problem with tax reform wasn’t actually tax reform. [...]

Euro$ #4 Calls Off The Bond Rout, Even Though It Means Fiscal Situations Likely To Grow Worse Still

By |2019-04-05T16:11:09-04:00April 5th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Critics of government debt, a group which really should include every taxpayer, like to point out how governments prefer to pay back that debt with hugely inflated currency. You don’t pay it off so much as inflate it away. Change the convertibility number for your local currency and, voila, a much more manageable credit profile [...]

What Bear Stearns Taught Us About The Folly of the BOND ROUT; Bonus: EFF’s Recent And Ongoing Contribution To The Same

By |2019-04-02T18:08:19-04:00April 2nd, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Over the last several years, we’ve been bombarded with mainstream stories about how interest rates have nowhere to go but up. Inflation, recovery, and most of all fundamentals. Who in their right mind is going to buy all this government debt! The supply is rising and, according to these people, the demand can only be [...]