Thursday, November 7, 2019

Interest costs going up

Ten year over 1.9%, the curve has slope so Treasury will begin paying over 2.5% with its rollover.

This seems like a repeat, whenever Krugman says borrow, the rats go up.  Mortgage rates are up meaning consumer homes become unaffordable for many. Notice that is Krugman debt we are rolling over to the higher rates. He always get r > g.

Thus the continuing resolution costs 40 billion more than when it was first decided a couple of months ago. The extra 50 billion would have been enough to get the small states  almost a billion each in subsidies, now gone.

No comments: