Frum:
The bond market has reacted to the S&P downgrade of US debt with a big rally in US Treasuries. As I write, the US government can borrow money for 10 years at about 2.3% and for 2 years at under one quarter of a point. The market wants to buy, buy, buy US debt [...]
What the market wants to sell are stocks: ie, claims on the future earnings of private-sector companies.
In other words, the market is saying: We fear recession and deflation. The Washington consensus is that we need to fight debt and inflation. It’s utterly upside down, utterly perverse.
Lucky for everyone, Obama has pivoted to jobs, jobs, jobs by ... um, talking about the debt.
Goddamit ...