- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
German bonds paying 'negative' interest?
Posted on 4/13/15 at 8:18 pm
Posted on 4/13/15 at 8:18 pm
Wow, this is crazy.
I think Germany has done this before in the last few years.
And I read a couple other countries are doing this as well.
The article is dated back in Feb 25, 2015.
WUT!!!
LINK
I think Germany has done this before in the last few years.
And I read a couple other countries are doing this as well.
The article is dated back in Feb 25, 2015.
quote:
On Wednesday, Germany issued its first 5-year bond ever with a negative yield, which means investors are making a loss by loaning money to the German government. It sold €3.3 billion ($3.7 billion) of debt at a negative yield of 0.08%, according to the country's Finance Agency.
quote:
Investors appear willing to buy at these rates because of falling inflation in Europe. There are even concerns about deflation, which could trigger bigger problems like a recession. The idea is that these German bonds would lose less value than other assets.
WUT!!!
LINK
Posted on 4/13/15 at 8:35 pm to Reubaltaich
So much for the Zero Lower Bound. Are they in this predicament because the Euro Zone didn't do QE faster? On a related note, if the US Fed followed the so-called Taylor Rule for setting interest rates, at the height of the financial crisis the rule would have told the Fed to set interest rate at like -4% or something ridiculous like that. Just imagine a world in which the interest rate is -4%. Wow...
This post was edited on 4/14/15 at 5:15 am
Popular
Back to top
Follow TigerDroppings for LSU Football News