The City of Detroit has defaulted on a portion of its bonds, specifically on payments to unsecured creditors. Those who invested in bonds with dedicated revenue streams attached have been spared, for the moment, but the reorganization plan drawn up …
A Default in My Backyard?
I’m no titan of industry, but I do wonder: How the hell do you lose your shirt renting parking spaces in New York City — at Yankee Stadium, no less? (Via Megan McArdle.)
(This will be the closest thing …
How Do You Say “Subprime” in French?
The French, God bless them, are picky about what foreign words get adopted into their language. But I was not surprised to see that one hated Anglo-Saxon term has made it into the Francophone world unmodified: subprime.
France is on …
The Bond Market vs. Obamacare
So, it turns out the people who handle federal debt for a living do not believe the persistently repeated claim that Obamacare actually would reduce the national debt:
Treasuries rose, pushing 10-year note yields down from a six-month high, as …
No Inverted Yield Curve = No Double Dip?
Bloomberg seems to think that the lack of an inverted yield curve (meaning a bond market in which long-term bond yields fall below short-term yields) means there will be no double-dip to this recession: The inverted yield curve has been …
Of German Bonds and American Prosperity
The question I am asked most often is: What will it take to get the government to stop running up the debt? A Republican president? A Republican president with a Republican House and a Republican Senate? A Republican president named …
First PIMCO, Then OPEC, Then . . . ?
This remind you of anything?
March 14 (Bloomberg) — Oil exporting countries are cutting holdings of U.S. government debt as energy prices rise, helping depress the dollar, the worst performing major currency of the past six months.
Treasuries owned by …
Bernie Madoff, Keynes, St. Augustine, and Cassanova
A stinging observation from John Cochrane:
If you really believe Keynesian Stimulus, you think Bernie Medoff is a hero. Seriously. He took money from people who were saving it, and gave it to people who were going to consume it. …
News Flash: Inflation Is on the Way
Uncle Stupid is dumping $109 billion in new debt on the bond market this week. This week alone, taxpaying chumps. And everybody has his eye on the new issue of inflation-protected bonds, which hit the market at 1 p.m. today. And …