As a long-time bond bull, my gratitude to the know-nothings in the Tea Party is profound.
So what if they played a major role in taking a thousand points off the stock market in the wake of the U.S. debt downgrade?
My bonds have rallied !!
Treasury bondshave rallied because investors obviously know a safe haven when they see one. There’s been an insatiable demand for U.S. Treasuries for the past decade, even as deficits soared, which is the dirty little secret that deficit hawks never acknowledge.
It’s debatable whether a credit rating downgrade was warranted, but you have to conclude that the appalling indifference toward default – proudly embraced by a large percentage of House Republicans – surely spooked the S&P analysts.
How stupid and reckless is the Tea Party? In addition to shrugging off a default threat – or perhaps welcoming one – they believe austerity is the correct medicine for a weak economy!! Where did they study economics, in a cornfield outhouse??
It defies belief that Tea Party members actually think spending cuts will create jobs. No – spending cuts will eliminate jobs. The Know-Nothings don’t understand that, but hey — it’s good for my bonds !!