On Wed, 26 Oct 2005, Doug Henwood wrote:
> Grant doesn't represent the mainstream of the bond market. His is a
> relatively marginal and highly ideological view - and his forecasting
> record is pretty mediocre.
>
> Point by point:
Points well taken. But do you think there is a chance that the otherwise inexplicable view you saw yesterday -- that there are elements of the bond market that consider Bernanke inflationary -- may indeed flow from a memory his 2002 speech? It was indeed somewhat aggressive and unorthodox. Most in the stocks would say it was those things in a good way. It doesn't seem far-fetched that bondholders might think it was those things in a bad way -- i.e,. too afraid of deflation risk and not afraid enough of inflation risk = soft on inflation.
Michael