Comments on: Opening Comments December 16 2008 http://acrossthecurve.com/?p=2312 A daily bond market chronicle Wed, 08 Sep 2010 04:43:57 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Joe http://acrossthecurve.com/?p=2312&cpage=1#comment-4977 Joe Tue, 16 Dec 2008 16:49:21 +0000 http://acrossthecurve.com/?p=2312#comment-4977 I'm reminded of the line Lloyd Bentsen used in the infamous VP debate: "If you let me write $200 billion of hot checks every year, I could give you an illusion of prosperity, too." (I googled it.) Yeah, deflation can be stopped, but not by monetary policy alone. In Japan at the peak, the average stock had a P/E exceeding 100, so their bubble was a lot "bubblier" than ours. I’m reminded of the line Lloyd Bentsen used in the infamous VP debate: “If you let me write $200 billion of hot checks every year, I could give you an illusion of prosperity, too.” (I googled it.)

Yeah, deflation can be stopped, but not by monetary policy alone.

In Japan at the peak, the average stock had a P/E exceeding 100, so their bubble was a lot “bubblier” than ours.

]]> By: Amicus http://acrossthecurve.com/?p=2312&cpage=1#comment-4973 Amicus Tue, 16 Dec 2008 13:48:28 +0000 http://acrossthecurve.com/?p=2312#comment-4973 For whatever it is worth, about half-way through the Japan lost decade, people were saying (circa 1997) that the BOJ should either have not cut to "zero" or should _raise_ rates, so that people could get some nominal interest. For whatever it is worth, about half-way through the Japan lost decade, people were saying (circa 1997) that the BOJ should either have not cut to “zero” or should _raise_ rates, so that people could get some nominal interest.

]]> By: Alex http://acrossthecurve.com/?p=2312&cpage=1#comment-4972 Alex Tue, 16 Dec 2008 13:35:56 +0000 http://acrossthecurve.com/?p=2312#comment-4972 Quantitative easing to flatten the yield curve? Can deflation be fought off? Quantitative easing to flatten the yield curve? Can deflation be fought off?

]]> By: Amicus http://acrossthecurve.com/?p=2312&cpage=1#comment-4970 Amicus Tue, 16 Dec 2008 13:29:49 +0000 http://acrossthecurve.com/?p=2312#comment-4970 scour the long end of the treasury market for yield ======= It will be interesting to see if money flows into the credit market, once 'the trade' in treasuries has little prospect of improvement. scour the long end of the treasury market for yield
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It will be interesting to see if money flows into the credit market, once ‘the trade’ in treasuries has little prospect of improvement.

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