Followed by 0
Ignored by 3
In United States
Registered May 23, 2009
Kevin's most recent comments:
- On 15 May 2013
I don't understand Paul Krugman,
The high bond yield was the RESULT of forced austerity, not the cause of it
That's a complete nonsense. Who is imposing austerity in Kenya or Pakistan? Their bond yields are higher than that of Greece. No one preventing them from printing more money.
Bond yields are usually determined by productivity of people in a country, and how much their government can extract wealth out of that productive population.
Bond yields are a function of the perceived risk of not getting repaid. PERIOD NOTHING ELSE.
Many things can cause a given bond to be perceived as risky. Kenya and Pakistan are unstable countries with roving bands of various militia and terrorist factions causing trouble. Austerity in greece is driving bond yields because investors see the continuing inability of the greek government to get their fiscal house in order as a risk to getting paid back. At some point they are going to have to choose between defaulting on debts and facing (more) riots from starving people. It doesn't take an ivy league economist to figure out which choice is more likely.
- On 12 May 2013
Exit! Stage Left,
Don't let the door hit you on the ass on your way out.
- On 10 May 2013
Please don't mix physics with economics. Social sciences are fuzzy, but they still work with the scientific method.