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Chart of the Week: 10 year Treasury 1974-2006

Posted By Barry Ritholtz On January 30, 2006 @ 2:10 pm In Federal Reserve,Fixed Income/Interest Rates | Comments Disabled

Greenspan garners all the credit for the low interest rates
of the past 20 years. We believe the chart below proves otherwise. The Oil
shock in the 1st half of the 1970s gave way to inflation shock of the 2nd half.

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10 year Treasury 1974-2006, Constant Maturity
Volcker_versus_greenspan [1]

Source: RCP, Economagic [2]

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When Volcker was appointed Fed Chair, inflation was in the
double digits and growth was stagnant. He forced unpleasant medicine down the
gullet of the American economy, limiting the growth of the money supply and
abandoning interest rate targeting. Inflation, which had peaked at 13.5% in
1981, was down to 3.2 percent by 1983.

 

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Random Items:

Americans Say Economy Is Getting Worse [3]

The Reform of October 1979: How It Happened and Why [4]

Technical Evidence Builds That We’re Near a Top [5]

Media Lesson: How the not to cover the economy [6]

U.S. IN TECHNICAL DEFAULT [7]

Ignorance is the opposite of bliss [8]

Partisans Adept at Ignoring Facts, Study Finds [9]

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Quote of the Day: 

“A wise observer of the economic scene once commented that
‘what can be left to later, usually is – and then, alas, it’s too late.’”

-Paul Volcker [10], Federal Reserve Chairman, 1979-87


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URL to article: http://www.ritholtz.com/blog/2006/01/chart-of-the-week-10-year-treasury-1974-2006/

URLs in this post:

[1] Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/volcker_versus_greenspan.PNG

[2] Economagic: http://www.economagic.com/mgif/M216073013201941013055353444218.gif

[3] Americans Say Economy Is Getting Worse: http://www.bloomberg.com/apps/news?pid=specialreport&sid=asvPs68xnJHk&refer=news

[4] The Reform of October 1979: How It Happened and Why: http://www.federalreserve.gov/pubs/feds/2005/200502/200502pap.pdf

[5] Technical Evidence Builds That We’re Near a Top: http://online.barrons.com/article/SB113816706834455724.html

[6] Media Lesson: How the not to cover the economy: http://www.niemanwatchdog.org/index.cfm?fuseaction=Showcase.view&showcaseid=0032

[7] U.S. IN TECHNICAL DEFAULT: http://financialsense.com/fsu/editorials/2006/0127b.html

[8] Ignorance is the opposite of bliss: http://www.guardian.co.uk/life/badscience/story/0,,1696910,00.html

[9] Partisans Adept at Ignoring Facts, Study Finds: http://www.livescience.com/othernews/060124_political_decisions.html

[10] Paul Volcker: http://en.wikipedia.org/wiki/Paul_Volcker

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