Megan McArdle is Always Wrong…Completely Outsourced Rate-Spread/Default Risk Edition
No one person (except perhaps the stalwart souls here and here) can stand to read Megan McArdle on a sustained basis. Or at least I can’t. She is such a reliable source of fail that reading her on a daily or even a weekly basis would do more damage to my productivity and my blood pressure than I could tolerate.
So it is with gratitude that I outsource this smackdown on Ms. McArdle’s inchoate dark mutterings on the possibility that the US Treasuries market is pricing in the risk of sovereign default to much more expert figures than myself. Here’s DeLong, offering a morsel of that which is dreaded by every aspiring “this-beats-honest-work” right wing pundit — actual data from the world; and here’s Krugman patiently explaining the kindergarten basics of the government bond market to the “The Atlantic’s Business and Economics Editor.” (sic! How the mighty have fallen…ed.) DeLong’s comment thread is fun too.
To those magisterial defenestrations (gotta use that word from time to time….ed.), I have only this to add. Ms. McArdle possesses a tic that in various forms is a familiar tell on the right. When someone over there wants to promote some out-there claim of Democrat-and-or-Obama induced catastrophe that they sense, somewhere deep down, may not actually make any sense at all, they intro their folly with some formulation like the one Ms. McArdle uses here: “it’s not unreasonable to assume…”
Translation: “I’m know I’m about to say something really stupid, don’t call me on it.”
(Thanks to Tim F. of Balloon Juice for bringing these delightful bits of smackdown to my attention.)
Image: Vasily Vasilyevich Vereshchagin, 1901.