Late 1981 is best known as the time when the galloping inflation of the 1970s and early 1980s finally broke, with Volcker hiking rates to 20% and the 10Y yield rising briefly above 16%, a yield which would destroy the world today. It also marked the end of the 35-year-old great bond bear market of 1946-1981 and the start of the great moderation which some 40 years later would push real rates to record lows of -7%. And while few may remember it today, it was December 8, 1981 - some 40-years-ago today - when an ominous event took place. As the NYT reported on Dec 8, 1981, "a man complaining of the high interest rates ... (full story)