Department of "Huh?"
Greg Ip: Bernanke Breaks Greenspan Mold


It is always a mistake to surf over to National Review. Always:

Pour in the Cash [Larry Kudlow]: [M]y campaign to get the Fed to permanently inject new cash into the banking system and deal with the dysfunctional commercial paper market — as well as the general credit freeze-up. There’s housing price deflation... commodity deflation.... Stock prices for materials are off nearly 13 percent since July 19, while metal and mining shares are off 16 percent. There’s the deflation of loan values, both CDOs and CLOs.

And there’s the deflation of the Treasury bill rate from 5 percent to 4 percent...

Does Larry Kudlow really not know that three-month Treasury bills are worth 98.76 when the bill rate is 5% and are worth 99.01 when the bill rate is 4%? That the prices of Treasury bills rise--hardly a sign of "deflation"?

Can he really be that ignorant? Can he really be that thoughtless?