Monthly Archives: May 2009

10-year Treasury Yield

It is interesting that there has been relatively little commentary on the increase of the 10-year Treasury yield.

In my opinion the rise is significant in many ways.  Perhaps chief among them is the fact that the yield has risen sharply (to a current 3.46%) despite a large-scale intervention designed to bring yields lower.   This divergence is significant because it raises the question as to whether we are witnessing a failed intervention.  While it is probably too early to classify it as such (due to, among other things, the fact that there is likely to be more purchases) perhaps the word “errant” might be more appropriate at this juncture.  At any rate, the increase in yields bears close watching.

Upon originally hearing of the intervention plans to purchase Treasury and Mortgage Backed Securities in order to bring rates down, I thought the plan was flawed in many fashions, both theoretical and practical.

For those unaware, I have previously written an article that discusses the hidden risks and unintended consequences of interventions; it can be found here:

Inaugural post

I have read that there are 60,000,000 blogs on the internet.  Assuming this is true, why create # 60,000,001?

Because I believe that the Financial Crisis, and our future economic situation, has been discussed incompletely and/or inaccurately.  In my opinion, there is a societal misunderstanding of the Financial Crisis, its potential risks, and probable outcomes.   To say there is much “on the line” here would be a vast understatement.

This blog will heavily reference writings from my website,