Lessons of the Summer Swoon
Larry Kudlow, National Review Online
The economy is suffering from something like a summer swoon. In the words of business columnist Jimmy Pethokoukis, the recovery summer has gone bust. We all know this from the sloppy statistics coming in for jobs, retail sales and, most recently, manufacturing. But market-based indicators are telling the same story. Let's start with the Treasury bond market. Yields have fallen to 2.6 percent today from 4.1 percent last April. Decomposing this Treasury rally shows that real yields have dropped 79 basis points, which is a signal of lower economic expectations. Receive news alertsMeanwhile,...
http://www.realclearpolitics.com/articles/2010/08/17/lessons_of_the_summer_swoon_106776.html
