People who worry the most about the recent increases in US government borrowing are generally worried about one of two things: crowding out or inflation. They fear that either if The Fed doesn't "print new money" for the govt to borrow, then the government's demands for borrowing money will drive up interest rates. This driving … Continue reading There’s No Crowding Out Here.
Steven Pearlstein of the The Washington Post explains via this story in the Hamilton Spectator why the run-up in the stock exchange of the last 6 months isn' t necessarily a good thing. Instead of being a predictor of good times to come, the run-up in the stock market is more likely the latest in … Continue reading TheSpec.com – BreakingNews – New bubble created by U.S. policy