I still think they’re overdoing it, and we’re going to see inflation. But today there’s no sign of it. People are buying 10-year bonds with 2.5% yields. Obama may be right to borrow money for infrastructure projects, especially if the infrastructure projects are aimed at breaking our oil addiction and are politically easy to turn off once the economy improves.
Tuesday, December 16, 2008
Prices Down Despite Monetary and Fiscal Stimulus
Prices are down at a time when the Fed and Treasury are doing everything they can to stimulate the economy? It’s amazing. The past January I thought they were doing too much, and would have inflation. Look how the 10-year Treasury yield is declining.
I still think they’re overdoing it, and we’re going to see inflation. But today there’s no sign of it. People are buying 10-year bonds with 2.5% yields. Obama may be right to borrow money for infrastructure projects, especially if the infrastructure projects are aimed at breaking our oil addiction and are politically easy to turn off once the economy improves.
I still think they’re overdoing it, and we’re going to see inflation. But today there’s no sign of it. People are buying 10-year bonds with 2.5% yields. Obama may be right to borrow money for infrastructure projects, especially if the infrastructure projects are aimed at breaking our oil addiction and are politically easy to turn off once the economy improves.
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