Underestimating the power of deflation is dangerous!

Sometimes we are a bit absurd in this morning missive in an attempt to make a point. Looking back at a recent issue, from the 2nd of December, titled \u201cCan you say 1% Treasury Bond Yield?\u201d we noticed the 30-year bond futures price has risen a bit since then; yields have fallen. Yes, yields have plunged faster than expected\u2014by us, and I imagine by many others.

If you pay some attention to this stuff, barely a day goes by now when you aren\u2019t being told by someone that Treasuries are the next major bubble. It will burst soon so it\u2019s time to start getting short.