Mike Whitney - Bond Market Madness
March 21, 2012 Improving economic data has sent US Treasuries plunging as investors ditch low-yielding assets and load up on equities.
This is the way the financial media is spinning the giant moves that have taken place in the bond market in the last week, but the media’s got it wrong. While there have been improvements in employment, manufacturing and consumer confidence, the economy is still limping along at half-speed well below its potential level of output. More importantly, wages are flatlining and consumer credit is in the doldrums. Aside from a slight-uptick in credit card receipts, there’s no indication that debt-stricken consumers are ready to go on another wild spending-binge. So, how’s a credit-based economy going to rebound when credit’s not expanding?
Read More:
