guayas12

Bond Expert: I'm Moving On, With Thanks

Mr Jansen:

Thank you. You shall be missed.

Bond Expert: Tuesday Outlook

Mr Jansen:

"Paid prognosticators and pundits should receive plaudits for predictions that production of the Industrial variety posted solid gains of about 0.5 percent last month."

A delightful alliteration, sir. Thank you.

Corrupted by the Treasury

Steve,
Thank you, you have no idea how much I enjoyed your description of sitting among the masters of the universe. Two of your observations really captured my attention:
1. How you "prefer structural to supervisory controls". This is fundamental to the proper functioning of a free market. Self supervision simply doesn´t work, there´s too much money involved. "Too-big-to-fail" (TBTF) is destroying the free market, scale of this dimension was never conceived of by Adam Smith. I don´t know what the solution is but TBTF must be resolved, somehow.
2. Your evaluation of Treasury as having all the answers, "knowing the truth", is similar to the evaluation of the attitude and decisiveness of terrorists. Do you remember Erich Hoffer´s "The True Believer", describing a very dangerous personality, when belief becomes knowledge? I was reminded of his ideas while reading your blog.

Steve, again, thank you. We, the informed public, have our work cut out for us.

guayas12

Bond Expert: Thursday Outlook

Though we have never met I enjoy starting and ending my day with your musings. Your description of the Curve´s ever changing structural anatomy is secondary, for me, to your perspective from thirty-year lenses.
I, too, am very worried, and getting more so. The element of trust, so important in the investment community of yesteryear (especially the boring bond market), is being replaced by increased volatility (spelled distrust).
Does the USA have the stomach to live lives with so much stress, facing the precipice daily? More and more Americans do so and unemployment lines continue to lengthen, just imagine what this Christmas is going to be like for millions of our fellow citizens.
I don´t know what the answer is though I concur with you that the market will impose its discipline at some point. For the growing numbers of unemployed it already has but I fear the market´s severity has not yet been tested.
Sister Mary taught you well, Mr Jensen, keep up the good work.