By Paul R. La Monica, CNNMoney
The yield on the 10-year U.S. Treasury hit a new record low Thursday and was briefly below 2%. The previous low was during the 2008 financial crisis. Click chart for more on bonds. (Chart from CNNMoney)
NEW YORK (CNNMoney) — Is that a disco ball I see?
I wish there was a word to describe such a scenario. Oh yeah. There is! Stagflation. Remember that old chestnut from the 1970s? Gas lines and what not? Good times. Or not.
Stocks plunged Thursday after several economic reports in the United States raised more worries about stagnant growth and higher inflation.
Weekly initial jobless claims rose again and were back above 400,000. There’s the "stag." And the Consumer Price Index rose at a much higher than expected rate in July. That follows a similarly strong Producer Price Index number Wednesday. Ladies and gentlemen, there’s your "flation."
Read the rest here: Stagflation signs surface in bonds, stocks, gold — The Buzz – Aug. 18, 2011.
