Ed Yardeni, president of Yardeni Associates, sits down with Aline van Duyn, US markets editor of the Financial Times in New York, sharing his views on bond vigilantes, US mortgage rates and other potential risks for 2010.
Part 1: Bond vigilantes
Yardeni, who coined the phrase “bond vigilantes” in the 1980s, says “the biggest risk we have right now for a sustainable recovery in the US” is that bond investors may lose confidence in fiscal and monetary authorities and sell bonds, which could push interest rates up and “slow the economy down appreciably”.
Click here or on the image below to view Part 1 of the interview.
Part 2: US mortgage rates
Yardeni discusses the recent de facto nationalization of Fannie Mae and Freddie Mac and the potential that US mortgage rates may start to rise to levels where the health of the housing market is affected.
Click here to view Part 2 of the interview.
Part 3: Risks for 2010
Yardeni talks about how housing, lack of confidence in the bond markets and demographic challenges in key economies are all potential risks in the coming year.
Click here to view Part 3 of the interview.
Source: Aline van Duyn, Financial Times (here, here and here), January 5, 2010.
