Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
bond rates would adapt going forward, taking into account the higher inflation.

I'm not totally convinced that the long-maturity end of the bond market works that way (and I know for a fact that the short-maturity end does not).

In any event, it would denude the value of outstanding portfolios without precipitating cascading bankruptcies the way the alternative option for denuding the value of outstanding bond portfolios (which is to say default) would.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Sep 7th, 2012 at 10:12:13 AM EST
[ Parent ]

Others have rated this comment as follows:

Display:

Top Diaries

Duplicity

by Frank Schnittger - Oct 20
55 comments

So what went wrong?

by Frank Schnittger - Oct 22
14 comments

Ulster says NO!

by Frank Schnittger - Oct 17
44 comments

Trump's Presidency Transfixed

by ARGeezer - Oct 17
20 comments

Spain is not a democracy

by IdiotSavant - Oct 14
10 comments

Occasional Series