Michael Kinsley Cries "Fire! Fire!!" in Noah's Flood
Ahem:
If Kinsley seriously believes that inflation is on the way, he and his wife could take their entire household portfolio and go short 20-year Treasury bonds @4.43% and long 20-year TIPS @2.11%. Each year over the next 20 that inflation is above 2.32% they make money.
I'm not one who pledges to always believe that markets have gotten it right. But I do believe that someone who doesn't think that market prices are aggregating information needs to tell a story about why markets have gotten it wrong before they set pen to paper.
That is all.
