Now that's more like it, internet!
You all are going to have to wait at least a week more for my to continue my death-march close reading of chapter 11 of David Graeber's Debt: The First 5000 Mistakes--a chapter which I think whose bankruptcy goes well beyond chapter 11 into chapter 7.
For today we have Paul Krugman:
Paul Krugman: Bill Grosses, Idealized and Actually Existing: "Brad DeLong tries at some length to rationalize Bill Gross’s insistence in 2011 that interest rates were about to spike...
...But while it’s nice to be charitable, to attempt to put the best face on someone else’s arguments, it’s also important to look at the argument someone was actually making. And the reasoning of Gross and others was much cruder and a lot more foolish than Brad acknowledges.... Gross wasn’t arguing that rates would rise sharply once people understood that the economy would normalize.... He was arguing that rates were being suppressed right now by the Fed’s purchases of Treasuries, and would spike as soon as those purchases ended.... Not only did it ignore the fundamental reasons rates tended to stay low in a deleveraging world, not only did it overestimate the impact of QE, but it also assumed that the rate of Fed purchases--the flow of QE--was what mattered, when sensible people argued that the stock of assets the Fed held mattered. I wrote all about this at the time. If you find it hard to believe that such a smart guy could make such a poor argument, well, that’s the world we’re living in.