How can a bond paying 2.8% over 10 years be a good deal when even the phoney manipulated statistic of official inflation is at 4.1%.
It is only because the stock markets and bond markets have been destroyed by the combination of Wall Street fleece artists, Federal Reserve con men, and Treaury Dept. hooligans. But I repeat myself, don’t I. It’s all the same guys, just different job assignments on different watches. (Rubin: Wall St -> Treasury -> Wall St; Geirthner: Fed -> Treasury; Paulson Wall St -> Treasury -> ???)
Right. But I was talking about tax frees...many of which are attrtacetively priced right now compared to T-Notes or other taxable fixed income vehicles(that aren’t junk).
For example, a muni paying 3.75% annually is the taxable equivalent of yield of 5.77% in a combined federal and state bracket of 35%.
That’s very nice!
Easy.
You get all your principle back.
Right now, “return OF capital” is what people want.
“Return ON capital” ain’t something anyone is worried about.