Posted on 10/10/2015 4:16:27 PM PDT by Lorianne
"Investors" are so desperate to hold on to short-term paper that they paid $100 for a 3-month Treasury-bill at today's auction. That is a 0% yield - for the first time ever - lower even than the auction right after Lehman's bankruptcy in Nov 2008.
It is probably safe to say that NIRP is next, followed by more negative yields further to the right of the curve, as the US gradually becomes Europe.
But don't worry: as Yellen admitted during her healthcare-scare speech, "nominal interest rates cannot go much below zero", just a little.
Next comes the negative numbers.
Yes...yes the stupid burns.
The US Government keeps the Free Money wagon rolling on for the Uniparty Crony Capitalists
If you are correct what sane person would by the paper?
When are mortgages going to 0%? /sarc
If we lived in a sane world we wouldn’t be talking about 0% in the first place.
excuse me “by” was meant to be spelled “buy.”
so what is an investor to do. Take on debt on assets that will appreciate, invest in gold, keep the S&P 500 index fund and ride the storm out?
Just wondering what the brain trust thinks.
You’d have to be crazy to buy this.
This sounds like people giving the US Government free money.
0% bonds with inflation well above 1% (at least 3%) already reflects negative rates doesn’t it?
For those who, like me, may not know what NIRP is, I googled it and learned:
ZIRP: Zero interest rate policy
NIRP: Negative interest rate policy.
But, but...Barky said the economy is roaring back and this is belied by the fact that zero rates means it’s coming to a screeching halt. How will the palace guard media spin this for him?
That same $100 would earn 1 1/4 cents at my local bank’s savings account. It doesn’t take a genius to see the better growth potential.
Using the rule of 72 that $100 at 0% would double when?
WTH is the point of a three month note at 0% interest?
I don’t get it.
How long before someone comes in to tell us how wonderful things are?
3, 2, 1....
The only safe investment for years now has been to pay down your existing debt.
That’s a guaranteed rate of return with zero risk.
Of course that’s assuming you owe money on something that isn’t financed at 0%
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.