Normal Interest Rates: What The Debt Panic Gets Wrong
A 5% long bond isn't the crisis, it's the receipt, and the fifteen years when money was free did far more damage to growth than normal interest rates ever will. This past week, two charts crossed my desk, arguing the same thing from opposite ends. The Kobeissi Letter flagged that U.S. borrowing rates just hit their highest level since 2007. Then, my friend and colleague, Adam Taggart, framed the economy as a submarine, with bond yields as the surrounding water pressure, asking how close we are to the hull giving way. Both are hunting for the same "implosion point." Both are anchored to an…
The skinny
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