The Kroog Versus His Obscenity Filter

Paul Krugman works to avoid blowing a gasket at T-bills.

I was sorely tempted to break the NYT rules on obscenity when I fired up my notebook this morning and saw the 10-year bond yield: 2.59 percent. We’re now almost back to the Oh-God-we’re-all-gonna-die yields at the height of the financial crisis.

Those invisible bond vigilantes are really cunning, is all I can say.

2.59% means that people are buying treasuries like crazy because everyone's expecting the Fed to turn on the Magic Printing Press.  In the last week or so the yield has dropped like a rock, meaning that people are not only expecting that Magic Printing Press to get booted up, they are expecting the Fed to have no other choice but to use it.

September 2010 = September 2008 again?

Don't be surprised.  Hey, it's not like the financial people were wrong or anything.

As 2010 began, there was nearly unanimous agreement in financial circles on at least one thing: Interest rates were sure to rise during the year. 

Yep.  Those Wall Street casts, man, they are effin smart.