Interesting to watch this going forward. Dr Edward Lambert has indicated that we are at the end of this business cycle.

Nobody on mainstreet likes rock bottom interest rates. But if this was a tantrum, massive demand is still there for bonds and the Fed won't have to do QE anytime soon. The people who need bonds as collateral cannot let things get out of hand, interest rate wise, before they have to buy and push yields down. Big market there.

"A combination of tighter monetary policy and looser fiscal policy might well generate the much desired non-inflationary growth." I would like to hear more about that Norman. Sounds like threading a needle with a rope, but that is just my initial reaction.

Wow, what a lightning fast tantrum! Goldman wants the counterparties to be able to buy dinner. Can you imagine if other focuses of Trump's policies actually see the light of day? Real chaos could ensue. And the Trump supporters don't understand how limited the Donald is. Hopefully he is pragmatic enough to slow this train down: www.talkmarkets.com/.../trumponomics-increase-exports-slow-imports-bludgeon-the-new-normal

I often wondered what Krugman was upset about. He got a fiscal spender. I can't say that Trump will get what he wants, and it is likely that if he does bad things will happen and your analysis agrees with most people who follow bonds: www.talkmarkets.com/.../trumponomics-increase-exports-slow-imports-bludgeon-the-new-normal

Hey Gary, he is the second bond guru in a week to say there is a cap on yields on long bonds. Thanks for posting the information: www.talkmarkets.com/.../blackrock-cap-on-yields-because-of-monumental-bond-demand

So, Bill, even you admit that bridges are an efficient use of government discretionary spending, maybe without Trump's deficits! We can't forget that the Hoover Dam spawned a city of 2 million people (Las Vegas). Our freeway system, established by a Republican, Eisenhower, was quite growth spurring. I just don't buy the libertarian argument without the exceptions that we see daily!

Just like Greenspan, Trump will soon learn about the conundrum. Or if the conundrum is breached, the financial system will melt down and the US taxpayer will pay for it. Credit will freeze like the Arctic in winter. It may even be worse than the Great Recession. He needs to slow down.

Yes, this is so true. But then these big pension and insurance funds are lending some bonds and taking, from hedge funds, stocks as collateral! So they this is all risky business. www.talkmarkets.com/.../bizarre-collateral-in-securities-lending-exposed-by-bank-of-mellon

A large and fast rise in interest rates will trigger margin calls. If the stock market declines, it will trigger margin calls. Bonds will be in even more demand as a flight to safety, causing this reflation to weaken. Ony if interest rates rise very slowly will the financial system be able to handle some of this change.

Interesting article. I am encouraged that Mish thinks a massive wall with Mexico paying for it is dumb. The problem with the Patriot Act is that the war on Terror is a diversion at best, and just plain fake in other cases. The true policy of the USA, John, is regime change. Taking away rights to mask the policy of regime change is a very damaging infliction both on the American people and upon the Middle East.