Wednesday, August 31, 2011

Bond and Gold Bubbles

David Malpass writes in WSJ today about the broad bond and gold bubbles. Think about this, Treasuries had the best month (of price gains-meaning yields falling) in over 3 years in the very month U.S. debt was downgraded. As Malpass points out, both gold and bonds have a "fear factor" component and this may account for a large portion of the current price movement.