Humble victory lap for Jim Bianco – he essentially says stay the course.  “We’ve gone up by 500 bps, but we haven’t tightened by 500 bps….  The first several hundred was just getting back to neutral.”

He reiterates his thesis.  Most people think the economy will turn down with rates to follow.  That hasn’t happened, and hands have been bloodied catching the falling knife.  In fact, we could get a 4% GDP print.  The current yield curve is a bear steepener with long-term yields rising faster than short-term yields.  The Great Moderation is over.  And we may even go back to a stock picking world vs. top/down index fund investing.