This prognostication is, of course, just a guess. No one knows what the economic picture will be in 30 days, much less 30 years. But the optimism is both refreshing and rewarding. Low rates, however, are not always a good thing. But if growth falls and unemployment rises, then rates are likely to drop even further.
Debt is lower, of course, because deficits have been lower.
This year, in fact, the Treasury will be retiring more debt than it issues, for the first time in decades. The result is that bonds are scarcer commodities than investors had expected. In the case of bonds, higher prices are the equivalent of lower interest rates. So far, the Treasury has not pared back the issuance of 30-year bonds. The happy possibilities include mortgage rates under 5 percent, a boom in auto sales, and a Dow well into five figures.