Saturday, 10 September 2011

Further Comment on Martin Wolf

This reply by Stephen King of HSBC to Martin Wolf says pretty much what we said earlier in the week (see below): namely, that low bond yields certaibly do not mean that "markets are telling governments to borrow and spend". Rather, "markets" are just in a panic at the crisis of profitability! Which is not to say, of course, that governments should not "borrow and spend" - that is precisely what they must and will do! But Wolf is "misreading" the situation all the same. Here is the King article:

http://www.ft.com/intl/cms/s/0/c3451258-da07-11e0-b199-00144feabdc0.html#axzz1XXcRbMFw

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