in NYC

13th August 2011

Photo

This shows the interest rate on US 10 year bonds. Interest rates on bonds show two things: the risk of default (.e.g. credit worthiness) and concern for future inflation. According to people who actually put money behind their words they don’t think the US Govt is going to default (interest rates dropped after the S&P downgraded them). Really, what the markets are saying is they expect economic growth to be very slow for a very long time.

This shows the interest rate on US 10 year bonds. Interest rates on bonds show two things: the risk of default (.e.g. credit worthiness) and concern for future inflation. According to people who actually put money behind their words they don’t think the US Govt is going to default (interest rates dropped after the S&P downgraded them).

Really, what the markets are saying is they expect economic growth to be very slow for a very long time.