Thanks. I appreciate that. I’ll have to read more on it and maybe I’ll have something to throw at you as far as the Fed lending money for next to nothing to banks...So they could get back on their feet.
So what the Fed charged was never lower than 0.75%? You are sure about that? As far as banks taking .75% money and buying 10 year Treasuries being a bad idea. The are risk takers these days and figure they can dump them at a rate rise
The rate was 0.5% from December 2008 until February 2010 when it rose to 0.75%.
The are risk takers these days and figure they can dump them at a rate rise
As long as you don't claim it's a risk free, guaranteed profitable, trade.