tag:blogger.com,1999:blog-6616959642391988608.post2114378716582669915..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Putting higher interest rates in perspectiveScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6616959642391988608.post-56634768209258271962013-07-01T03:12:00.175-07:002013-07-01T03:12:00.175-07:00You write, “As I detailed last week, the .... it&...You write, “As I detailed last week, the .... it's all because the market has gained confidence in the economy's ability to grow.” And you write “Today's interest rates, which embody expectations of higher interest rates to come, are not likely to pose a threat to the U.S. economy”. <br /><br /><br />I rspond, that its all because of Jesus Christ stimulated a quick rise of the theyenguyhttps://www.blogger.com/profile/08515095308836729043noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-72911108673821665002013-06-26T08:34:24.751-07:002013-06-26T08:34:24.751-07:00No, Scott, neither the Fed nor the market believes...No, Scott, neither the Fed nor the market believes in a bright future for the economy. It's only you.<br /><br />What has changed is that the Fed has reneged on its inflation, or N-GDP, target. That has blown up a lot of trades, including gold, betting on negative real yields (due to artificially suppressed nominal yields). Hence the rise in real yields. Has nothing to do with economy. PleaseGloeschihttps://www.blogger.com/profile/10705125909506053628noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-72666704317585547262013-06-25T21:03:36.112-07:002013-06-25T21:03:36.112-07:00On credit expansion...http://online.wsj.com/articl...On credit expansion...http://online.wsj.com/article/BT-CO-20130620-709238.html?mod=djempersonalL.A.https://www.blogger.com/profile/17235323298066514444noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-67601645816783311972013-06-25T21:01:46.456-07:002013-06-25T21:01:46.456-07:00There is some indication that the sudden surge in ...There is some indication that the sudden surge in yields is related to policy actions taken (or not taken) by People's Bank of China. The Market Monetarist blog has some posts on that. <br /><br />I see no macroeconomic reason for such a sudden move, although, as Scott Grannis points out, historically, interest rates and inflation remain at historic lows, and the resent spike looks like a Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-32746657218212672952013-06-25T20:58:18.952-07:002013-06-25T20:58:18.952-07:00Higher rates are great news IMO at this point in t...Higher rates are great news IMO at this point in the expansion. If I'm a bank I'm reluctant to lend 30 year money at 3.5% to anyone with anything except a perfect credit score. Credit expansion occurs from here. Helps business investment, housing, commercial construction.... get ready for the expansion to begin to accelerate. L.A.https://www.blogger.com/profile/17235323298066514444noreply@blogger.com