• David White
    Some pundits say the initial QE replaced a lot of the lost wealth. However, further QE now will likely lead to inflation. Bonds will devalue
    10/4/12
    Reply (10)
    • David White: Higher bond yields may cause much larger budget deficits. Higher mortgage rates could push housing prices down further?
      10/4/12
    • Bildar: Bond yields had better get moving then, because at the moment they are waffling around their lows.
      10/4/12
    • David White: They seem likely to stay there short term. However, it is a situation that can turn on a dime. When they start to go up, they may sprint.
      10/4/12
    • David White: If Congress and the Fed both indicate there is no fiscal discipline, they will go up a lot. A critical time for that is coming up.
      10/4/12
    • David White: If you are going to devalue the currency, people will insist you pay them a larger dividend to compensate for the devaluation risk.
      10/4/12
    • Bildar: That'd be worst case, I think. Congress will be "good" after the election, as compromise will be in the air.
      10/4/12
    • David White: Even if they are "good", they will have trouble agreeing on something reasonable. They could still hit the fiscal cliff. Or they could kick
      10/4/12
    • David White: Even if they are "good", they will have trouble agreeing on something reasonable. They could still hit the fiscal cliff. Or they could kick
      10/4/12
    • David White: it down the road. This would still present problems. They have shown no inclination to agree on ways to rein in Medicare/Medicaid spending.
      10/4/12
    • David White: it down the road. This would still present problems. They have shown no inclination to agree on ways to rein in Medicare/Medicaid spending.
      10/4/12