From Barrons today, suggesting that interest rates are starting to rise. The article indicates that nations' debt ratings are increasingly threatened by unbridled borrowing:
The incoming Obama administration got a rude reception from the debt markets.
Ed Yardeni, who coined the term "bond vigilantes" back in the early 'Eighties, sees them being roused again. Then, the vigilantes' main target was inflation; now it's burgeoning budget deficits around the globe.
The eponymous head of Yardeni Research notes that the Congressional Budget Office is projecting a fiscal 2009 budget deficit of $1.2 trillion -- 8% of U.S. gross domestic product. And that's before President Obama's $800 billion stimulus plan.
Reading the entire news story requires a paid subscription to Barrons. This story seems to confirm my post from Thursday incidating that long-term interest rates -- which are less subject to Fed manipulation -- are rising, like it or not.
