Alexander Hamilton’s Creations Are in Uncharted Territory
The slide below 1% suggests the Fed has lost control and has troubling implications for the long-term economic outlook.
What would the founding father of the bond market make of this?
Photographer: Bruce Glikas/FilmMagic/Getty Images
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The U.S. bond market is largely the invention of Alexander Hamilton. Other founding fathers, led by Thomas Jefferson, were disgusted by the mere idea of a secondary market in debt, in which the interest rate could change according to the whims of the market. Jefferson swallowed his objections after he negotiated for the nation’s capital to be built in his home state of Virginia in return — and famously no one else was in the room when it happened.