Jim Grant: Fed Has Left Us with a Bond Market That’s “All but Destroyed”

from Zero Hedge

Jim Grant of Grant’s Interest Rate Observer recently made an appearance on WealthTrack with Conseulo Mack to talk “Financial Bubbles of Historic Proportions”. Grant covered numerous topics on the macroeconomic picture.

On Interest Rates

“Basic rate of interest does the following: it helps us to connect the present with the future, it discounts future cash flows. They connect past present and future. And they help us calibrate credit risk – the chances of somebody not getting paid. They help corporate managers decide whether a certain investment is worthwhile,” Grant says. “They’re prices, and prices in general I think are better discovered in the marketplace.”

“Worldwide, we have a regime of price administration and suppression. Which, I think, is trouble.”

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