Guys: this is not good news. The days of zero yields have arrived. Here’s the news from the New York Times: As Markets Waver, Treasury Yield Turns Negative This presents a major problem. First it renders the Federal Reserve Board much less effective. Traditional monetary policy, as executed by the FRB, includes cutting interest rates […]

David Leonhardt regularly contributes economic articles to the New York Times in his column called ‘Economic Scene’. Today’s is very useful because it continues the discussion over the proposed bailout of the ‘Big Three’ auto makers. Here it is: Economic Scene – Figure Skews Debate of a Bailout for Detroit – NYTimes.com Apart from the […]