Leadership Bonds

Brad DeLong in a piece titled The Sorrow and the Pity of Another Liquidity Trap  writing for Bloomberg provides some much needed perspective on the current head scratching situation in the bond market.  Specifically, what accounts for the absence of the much dreaded and hyped bond vigilantes.  Ends up they are happy to take their better than a kick in the face returns on T bills so long as prospects for the economy and reasonable alternative investments continue to be scarce. 

In effect begging the government to take their money at whatever return they can get so they can do something productive and get us out of this mess.  If only the Roosevelt's were around to provide the leadership and determination to actually take them up on it.  The once in a generation opportunity to reset the balance while establishing the foundations of long term growth and sustainability in the 21st century is passing.  That is until we are smart enough to elect leaders who are not simply up to the management task but capable of generating the necessary consensus to get it done.  History will be unkind to anyone else.