These guys are reaching Bill Kristol levels of prediction making:
As 2010 began, there was nearly unanimous agreement in financial circles on at least one thing: Interest rates were sure to rise during the year.
Quite to the contrary. As Labor Day approaches, interest rates have collapsed, plunging along with economic optimism.
That turn of events, which has shocked savers and stunned investors, appears to indicate that financial markets’ worries are turning in a very different direction from those of many governments.
The governments are seeking ways to bring down budget deficits, fearing that without austerity they could go so far into debt that they would never be able to borrow again. Investors in the financial markets seem to be much more concerned by the possibility of renewed recession and a general deflation that could send asset values and prices down.
Of course the reason governments are focused on deficits and austerity is that the Galtian geniuses spent the last two years screaming about the budget deficit and austerity or the bond masters would kill us all in our sleep. The entire time, of course, Krugman’s hair was on fire and he was screaming bloody murder, but since he is a dirty hippy, he doesn’t count.
So now, because the assholes who created our financial mess were then wrong about the way to handle that mess, we can look forward to even more economic pain. Another round of bonuses for everyone!