After more testimony from Chair Yellen and more verbal acrobatics from ECB President Draghi, I am posting a CNBC hit with Rick Santelli and an early January 2014 piece noting that the FED practice of economics is not “rocket science.” In listening to Yellen and reading Jeremy Stein’s recent speech, Fed policy is still based on the best “educated guesses” of some very bright theoreticians. Sometimes it is good to take a look backwards .While many have been surprised by the volatility in the yield curves it did not surprise readers of Notes From Underground.The 5/30s curve represents the search for value and a traders market where some large positions had to be unwound. The next few months on the yield curves will be very important for many asset classes, but we will analyze that next week.
January 8, 2014: Looking at Yield Curve Volatility (CNBC)
January 5, 2014: It Ain’t Rocket Science, Which Is Too Bad for the Dismal Science