Market Turmoil Pushes Japanese Bond Yield Below Preferred Range; Here's why the economy feels so bad when it sounds so good


• The yield on 10-year Japanese government bonds fell to as low as minus 0.215%, driven in part by foreign investors’ buying
• Foreign investors usually park their yen in short-term bonds, but recently they have been buying longer-term bonds in which they see a more attractive yield
• To get the negative yields back up to zero, the Bank of Japan could dump some of its government-bond holdings. However, it is unlikely to do so because such a move would be seen as monetary tightening when investors are worried about the global outlook


• Unemployment is at record lows and the stock market is at record highs, yet Americans largely don’t feel confident about the future. These measures aren’t enough to tell what’s deeply wrong with the country
• Despite wages eking up a little bit since the financial crisis, adjusted for inflation, Americans haven’t gotten a significant raise since 1999
• Since 1989 the share of wealth held by the top 1% of households has exploded, while for the bottom half things have frozen in time