00:00I've been thinking that the 10-year bond yield is back to normal, and normal being 4-5%.
00:06That was the range that we had before the great financial crisis.
00:10The bond market's actually finally working the way it should work.
00:14It's allocating capital efficiently.
00:16It wasn't doing that when the Fed was basically rigging the bond market
00:21by keeping the bond yield close to zero by dropping the federal funds rate down to zero.
00:27So this is kind of back to market-driven interest rates.
00:33Now, of course, that also means that the bond vigilantes are much freer to express an opinion
00:39than they were when the Fed was controlling things.
00:42And they obviously are concerned about the debt.
00:45They're concerned that maybe the Fed isn't being vigilant enough about inflation.
00:51They're concerned about the price of oil.
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