Comments on: Bailing out the bail-out http://www.globaldashboard.org/2009/02/10/bailing-out-the-bail-out/ Global risks and how to respond to them, edited by Alex Evans and David Steven Sat, 11 Feb 2012 13:49:12 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jules http://www.globaldashboard.org/2009/02/10/bailing-out-the-bail-out/comment-page-1/#comment-8021 Jules Thu, 12 Feb 2009 08:28:17 +0000 http://www.globaldashboard.org/?p=7984#comment-8021 I didn't ask him about that. I didn’t ask him about that.

]]> By: Alex Evans http://www.globaldashboard.org/2009/02/10/bailing-out-the-bail-out/comment-page-1/#comment-8012 Alex Evans Wed, 11 Feb 2009 22:38:10 +0000 http://www.globaldashboard.org/?p=7984#comment-8012 Does Higgins' analysis take account of the additional potential inflationary impact if energy prices go back up in line with any recovery? Does Higgins’ analysis take account of the additional potential inflationary impact if energy prices go back up in line with any recovery?

]]> By: Jules Evans http://www.globaldashboard.org/2009/02/10/bailing-out-the-bail-out/comment-page-1/#comment-7990 Jules Evans Wed, 11 Feb 2009 09:46:21 +0000 http://www.globaldashboard.org/?p=7984#comment-7990 You're right, in the long-term, but on the other hand the sudden increase in demand from the Fed upping its buying might give a short-term push to Treasuries prices, giving quick investors a chance to make profit. One analyst I spoke to yesterday, John Higgins at Capital Economics, reckoned it was 'only a matter of time' before the Fed starts setting targets for Treasury yields, as the Bank of Japan did in the 90s. This doesnt necessarily have to be inflationary, he reckoned, if the economy is still growing really slowly, as Japan's was (and is). You’re right, in the long-term, but on the other hand the sudden increase in demand from the Fed upping its buying might give a short-term push to Treasuries prices, giving quick investors a chance to make profit.

One analyst I spoke to yesterday, John Higgins at Capital Economics, reckoned it was ‘only a matter of time’ before the Fed starts setting targets for Treasury yields, as the Bank of Japan did in the 90s. This doesnt necessarily have to be inflationary, he reckoned, if the economy is still growing really slowly, as Japan’s was (and is).

]]> By: David Steven http://www.globaldashboard.org/2009/02/10/bailing-out-the-bail-out/comment-page-1/#comment-7954 David Steven Wed, 11 Feb 2009 08:14:29 +0000 http://www.globaldashboard.org/?p=7984#comment-7954 If the government buys its own debt, it's doing so by printing money presumably? Which in the end is inflationary - and thus disastrous for bondholders... If the government buys its own debt, it’s doing so by printing money presumably? Which in the end is inflationary – and thus disastrous for bondholders…

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