Just watched Chris Hayes's "Pragmatist" session on CSPAN and curious whether he's been able to do any research on the Florida caller's volcano incineration plan. But seriously, next time he may want to consider pleading the same answer ("far far outside my area of expertise") to other, perhaps less obvious areas of non-expertise, namely some of the technical finance topics discussed today.
For instance, the war bonds idea: the logic that savings rates and patriotic fervor would determine such a program's success is lost on me--thought it was surplus capital and prospect for returns? And sdid you know yields briefly went negative on the ten-year treasury last month? Turns out investors valued the safety of the US government as guarantor enough to get back less than they put in on a nominal basis. So why exactly could treasury not issue depreciating zero coupon bonds to curb deflation?
If this mess we're in has anything to do with policymakers failing to understand the technical ramifications of their actions, let's all just raise our hands when we don't really know the answer, and admit it.
David B. Brooks
Jan 11 2009 - 10:19am