Tough Love
Price discovery is a helluva thing. It's also a normal thing. Or at least it used to be.
There's no shortage of catastrophizing across the mainstream financial media around the most recent leg higher for long-end US Treasury yields (i.e., the August-September extension of what threatens to be a three-year selloff).
The hysteria is understandable to the extent it's a function of the profit motive (hysteria sells) or if it emanates from journalists and editors too young to remember a time when f
Vociferous Head Nodder here. Thanks for saying in your own way that tough love has merit at times. It is time IMHO.
I remember back in the 70s and early 80s that the average CEO pay was about 30-35x the average worker pay. Those days are long gone. None of the senior executives that I have sat in meetings with have demonstrated that they add 100s of times more value to any company than the average worker. On the contrary, many have actually hindered and delayed projects with insistence on idiotic mandates.
Couldn’t agree more. And as you imply, a return to price discovery in the bond market is also a much-needed first step toward repairing our dysfunctional politics. Left unchecked, casiono capitalism will be the death of liberal democracy.
The MMT’ers will have a hard time w/ price discovery.
So, markets have no heart, and they have no conscience, either. An academic colleague of mine wrote an interesting book which asserted that companies develop pathologies which affect their collective behavior and performance. If the “market” is an institution with a behavioral personality, then it also has a pathology and is, in effect, a sociopath. What about the Fed?
Fed has mandates that benefit others, hence not a sociopath.
Head nodded here