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Fed’s economic rescue attempts are actually working

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The game of "Grecian chicken" flaps and clucks on, with Greece near default and likely to leave the euro, which would ruin its economy; and Europe withholding new money until Greece agrees to austerity that will ruin its economy. The 10-year Treasury note's yield needs no scary help from Europe to stay low. The Fed's "Operation Twist," swapping short Treasurys for long ones, has since Nov. 1 kept the 10-year between 1.82 percent and 2.05 percent, and mortgages close to 4 percent. Zzzzzzzz. Economic news didn't amount to much this week, except the encouraging drop in weekly unemployment insurance claims, now below 375,000, which is half the level of the worst in 2009. Public policy follies and heroics dominate everything, with economies and markets still in one intensive care unit or another. For slapstick, it's hard to beat the mortgage servicing settlement with states' attorneys general -- a tasteless joke on people in trouble, and housing. Eighteen ...