The Case for Bonds - Up and Down Wall Street Daily - R. Forsyth - Barrons.com

IS IT THE 1970'S OR THE 1980'S? - The Case for Bonds - Up and Down Wall Street Daily - R. Forsyth - Barrons.com:

"Perhaps the comparison to the 80's should be that of the 1970's?

In other words, if one asks the question - 'Is the environment for support for business getting better or worse?' - the answer might be a better harbinger of the direction of rates.

One can look at both Greece (foreign) and California (domestic) to see that a poor economy and too much borrowing eventually causes lenders to ask for higher rates.

Concomitantly, all developed countries have a less than stellar pro-business climate and all are borrowing and needing to borrow ever more to pay their promised and cherished social benefits.

So, while business may not be rushing to borrow and expand, that certainly isn't the case for governments!

And, sadly, businesses create jobs and wealth and government consumes wealth.

Clearly, the US is currently asking young people to give up a brighter future for themselves in order to provide for early retirees and the 'unfortunate'.

I'd say we've decided to add almost all young people into the 'unfortunate' category!"