I am not sure there is a consensus. Certainly it is possible that bond yields accelerate and prices decline. But no one has really tried to bust the New Normal which consists of greater demand for bonds as collateral. The tax cuts are an effort to bust it. Flooding the market with bonds may or may not succeed in bringing bond prices down.

I think they schmooze with Goldman Sachs, makers of volatility.

Wozniak owns Tesla products. I think his insight is genuine.

Steve Wozniak said Elon Musk was not trustworthy, that he could not believe the Tesla owner. Serious scepticism is appropriate.

Thanks Prof. As I said in the article, Kalecki's views are modified somewhat by the new reality. But, factories are old. Equipment is aging. Perhaps with better factories the return on investment could improve. Spending by consumers with easy credit, on increased imports, seems unsustainable. Asian efficiency is a real issue. But Asia depends on the uS consumer.

If it is back to normal, Lloyd Blankfein will appear on talk shows talking about how it is too quiet, again!

Interesting article. Watching the repo market will become interesting.

You are probably right, as long as the massive glut of bonds caused by Trump tax cuts are absorbed. If there is difficulty absorbing them, which is partly the goal of those cuts, then rates could rise and financial dislocation could occur.

That is a very good question, Wendell. Could be greed, due to profits,being good. Could be complacency, because of the stability of profits. Could be fear, due to the weakness of labor and other factors. If anyone is more qualified to answer this question than I am, please comment.

I would like to think it could be a solution. But it may be a disaster if bonds are no longer trusted as a store of value. Could that happen?