Terrafugia
Financial markets have seen violent swings lately, particularly in the fixed income market, as interest rates on Treasuries have surged in a manner that we haven't seen since the end of the financial crisis.
Part of the reason for the rise in rates is the improving economy, but a lot of it is believed to be the result of the Fed taking on a slightly more hawkish tone, and Bernanke indicating his inclination to "taper" the pace of bond purchases starting later this year.
But the ructions in financial markets, and the drop in inflation expectations, is a hint that perhaps the Fed is being premature, and that if things deteriorate again, and the Fed needs to press back down on the gas pedal, then it won't have the credibility it needs, having been timid this time around. That's Paul Krugman's argument, who says that the Fed is making, potentially, a historic mistake.
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