Jeremy S. squared Op-ed Follow up -

 op-ed in the WSJ last week should be a laughing stock! I suspect these two goof balls know it too.  I find little value to spending time rebutting but I said I would so here goes.

There can be no bond bubble because it's a savings account not an equity.  It makes no difference what the yield is you still get your money back at maturity, guaranteed.   Nothing

is selling comes with a guarantee.  They're equity guys drumming self-preservation.   

Kudos to the CNBC crew that interviewed Professor Seigel as they correctly identify flaws as follows:

CNBC "I wonder, Professor Seigel,  how there can be a bond bubble specifically in treasuries when the government controls it and the government has ... explicitly pledged to keep interest rates low.  Does this mean that the bubble, if there is one, has to pop or can the air be let out more gradually as the government controls it?"
 
Siegel "Gobbeldeegook...1.4 Tarillllliiiooon dollar deficit.. Bippity-boppity-boo."

CNBC then makes a point that underscores what I said above - a bond is an investment has a guarantee and therefore cannot deflate nor can it inflate -  your money is always there at maturity.

It's a savings account, stupid!

Why I'm not pushing the rates-could-reverse-sharply pill.

Or the.reverse-quickly one either.  History clearly shows us that the Fed sets the trend.

Stormy
    www.moslereconomics.com
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