Not all broken records are worth celebrating. Last week, the yield on 10-year Treasury bonds hit 1.54%—the lowest it’s been in 220 years. The financial turmoil in Europe has much to do with the collapse in yields. Low borrowing costs does not mean there isn’t a long-term debt problem. But periods with low borrowing costs are times when the country should not be concerned about deficits in the short-term, some say, because markets are urging consumers to borrow more. Still, this is the perfect opportunity for the government to make investments and put people to work. The problem is that Congress doesn’t seem to be taking that tack.
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