The Inventor Of 'Bond Vigilantes' Explains Why They Just Showed Up In Italy

Odd Lots

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4.4 • 1.6K Ratings

🗓️ 11 June 2018

⏱️ 34 minutes

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Summary

Longtime market analyst Ed Yardeni came up with the term "Bond Vigilantes" to describe the way bond market participants can punish governments who run economically irresponsible policies. When Yardeni used it in the 80s, it referred to US fiscal policy that was thought to be inflationary. Now the bond vigilantes are back, but this time they're in Italy. On this week's podcast, Yardeni explains the history of the term, what's going on now, and how interest rates can be used to model stock market valuations.

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0:40.8	And context changes everything. Go to Bloomberg.com to get context. Hello and I'm Joe Wiesenthall.
0:59.0	Hello and welcome to another episode of the Odd Lots podcast. I'm Tracy Allaway.
1:00.0	And I'm Joe Wiesenthal.
1:02.0	Joe, what is the most overused quote in all of financial journalism and commentary?
1:09.0	I don't even know where to begin with that question. I don't know I'm stumped.
1:17.0	Well it might not be that obvious actually. Okay in my humble opinion it has to be the quote by James Carville the Bill Clinton
1:24.6	advisor about the bond market did you ever hear that one oh yeah yeah I love that
1:29.6	quote the one about James Carville saying that he wishes or he said if he gets
1:35.4	reincarnated he'd like to come back as the bond market because that can scare
1:39.2	everyone right something like those along those lines, that's a pretty good paraphrase.
1:43.6	He said so that I could intimidate everyone.
1:47.2	And I have to say, if you're a financial writer,
	...

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