man bites dog

[Doug Henwood]

Just saw Paul McCulley of Pacific Investment Management (PIMCO), the 
world's largest bonds, on CNBC. He's worried about "a crisis in 
capitalism" - hunkering down, the disappearance of animal spirits, 
excessive corporate debt levels, the threat of sliding "into a 
Japan-type situation." His advice is that the Fed must junk its 
"pre-emptive tightening" policy (under which it had said it would 
tighten even before inflation picked up, just to prevent its 
emergence) and commit to higher inflation. Coming from a big bond 
dude, usually the most inflation-phobic critter around, this is man 
bites dog stuff.

Doug