Under this surreal system there is massive demand for long bonds. I don't think it is a bubble based on demand. Debt is gold, David.

Our rates would most likely be lower if the bankers had not been rigging the bond auctions.

He pledged to work with the Republicans, and certainly did that. Used to be that the Republicans were for the international bankers and the Democrats were for the people. But that ended with the assassination of JFK by LBJ and his friends.

Great article, but I hope no electric car becomes desired by the masses. Green is one thing, but self driving control of the populace holds a much greater danger to the world than oil. And Nevada where I live has poor lane markings continually. Self driving won't even work here and on snow it would be a real joke. This may be the biggest con ever promoted by the financial community since the housing bubble.

Yeah, but again, if the Fed did it, the balance sheet would be dangerously big. This is all about a shortage of Treasury bonds. There are not enough of them. And that is the Achilles Heel of this diabolical system. But to have the Fed do the financing instead of the taxpayer seems to be very dangerous and could predispose even lower interest rates in the future..

They are closet austerians. But the alternative in their system is overheating that cannot be stopped. This is bad, really bad.

I could be Keynesian, but think about it, too much money goes to speculation. And secondly, as long as interest rates on long bonds stay low and there is massive demand for them in the derivatives markets as colalteral, and they seem doomed to stay low, overheating the economy will be pretty dangerous.

Austerity is not such a great policy, Alan Greenspan almost single handedly put the world on a course to low interest rates. He called it a conundrum. But he created the conundrum. He created massive demand for derivativies collateral, namely long bonds. He created this draconian system that we now suffer under. So, Summers is wrong to think that we can heat up the economy without grave danger. Until we change the rules and forbid long bonds for use as collateral, economics won't work right anymore. And we have Greenspan to thank for that.

Mike, you do realize this will be very bad for freedom in America, don't you? Self driving cars are both a fetter to liberty, but also a means towards eugenic culling of the world's population. I wrote that here: www.talkmarkets.com/.../conspiracy-self-driving-cars-and-culling-the-human-population

Some laugh at me now for the positions I take in that article. But I assure you, it is no laughing matter.

Pundits are like golfers, they have to have very short memories.