Krugman: The Wages of Bad Macroeconomics

[ProSense]

Krugman: The Wages of Bad Macroeconomics

What you missed if you believed that the bond vigilantes were coming any day now, that rates would soar as soon as QE2 ended, and all that: Betting on Bernanke yields 28% return on treasuries.

Betting on Ben S. Bernanke has been the most profitable trade for government bond investors in 16 years, defying lawmakers in the U.S. and abroad who said the Federal Reserve chairman’s policies would lead to runaway inflation and the dollar’s debasement.

Treasuries due in 10 or more years have returned 28 percent in 2011, exceeding the 24.4 percent gain in all of 2008 during worst financial crisis since the Great Depression, according to Bank of America Merrill Lynch indexes. Not since 1995, when the securities soared 30.7 percent, have investors done so well owning longer-dated U.S. government debt.

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Robert Reich: Why This is Exactly the Time to Rebuild America’s Infrastructure

Seems like only yesterday conservative nabobs of negativity predicted America’s ballooning budget deficit would generate soaring inflation and crippling costs of additional federal borrowing.

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Last week ten-year yields on U.S. Treasuries closed at 1.83 percent.

In other words, they were wrong.

In fact, it’s cheaper than ever for the United States to borrow. That’s because global investors desperately want the safety of dollars. Almost everywhere else on the globe is riskier. Europe is in a debt crisis, many developing nations are gripped by fears the contagion will spread to them, Japan remains in critical condition, China’s growth is slowing.

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[ProSense]

1. No comment? n/t

[wellst0nev0ter]

2. On What? The Fact That The Investor Class Is Again Getting Richer?

All snarkiness aside, I guess that's good.

[ProSense]

3. Well,

"All snarkiness aside, I guess that's good."

...what would a good comment be without snark?

The U.S. government isn't collapsing as the GOP had hoped and predicted. It's definitely a good thing.

[Supersedeas]

7. Awesome for those who have disposable income

[lumberjack_jeff]

4. The world's best investment is a 1% return based on John Boehner's full faith and credit. Yikes. n/t

[ProSense]

5. Well,

"The world's best investment is a 1% return based on John Boehner's full faith and credit."

...at least Krugman and Reich aren't giving credit to Boehner for the administration's policy.

FYI, Boehner and Republicans have been attacking the Fed's policy.

[DCBob]

6. Many RW "experts" have been predicting runaway inflation ever since QE1..

idiots.