Sad sentences

“Europe’s plan was to have growth fix the problem. America’s plan was to have growth fix the problem. And that’s not going to work,” said Kenneth Rogoff, an economics professor at Harvard. “I think it’s really starting to sink in that we’re not anywhere near an endgame.”

Here is more, though most of the article is well-known.  Brad DeLong had a very good post:

You Know, If You Had Told Me a Year Ago That on August 5, 2011 S&P Would Downgrade the U.S, and the 10-Yr Treasury Would Yield 2.5%…

… I would have laughed at you. I would have said that while there were possible futures in which each of those things happened, they were disjoint futures.

One way to solve that conundrum is to think about what expected real rate of return fits into both facts.


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