Started By
Message

re: Our president supports negative interest rates

Posted on 9/11/19 at 5:31 pm to
Posted by Big Scrub TX
Member since Dec 2013
33315 posts
Posted on 9/11/19 at 5:31 pm to
quote:

This thread, like the last one on negative rates saddens me.

How is it possible that so few people comprehend that there's NOTHING different about the reasons for investing in a negative yield instrument vs the reasons for investing in a positive yield one?

Seriously. This is just bad
We get it, you're a genius. The actual point isn't between positive and negative - it's between "low" and "normal". The very same people (e.g. Larry Kudlow) who were skyscreaming that the Fed was propping up Obama with low rates are now the ones screaming loudest for them to stay low and/or go even lower. Why are you pretending like you don't understand this, professor?
Posted by slackster
Houston
Member since Mar 2009
84609 posts
Posted on 9/11/19 at 5:34 pm to
quote:

How is it possible that so few people comprehend that there's NOTHING different about the reasons for investing in a negative yield instrument vs the reasons for investing in a positive yield one? Seriously. This is just bad


, it is completely different.

Plenty of people buy fixed income investments for income. Negative yielding products are only useful for capital gains, not for income.
Posted by More&Les
Member since Nov 2012
14684 posts
Posted on 9/11/19 at 6:03 pm to
quote:


Our president supports negative interest rates by ShortyRob



Where the frick did Trump say he wants negative rates?

Bunch of fricking liars, the lot of you
Posted by slackster
Houston
Member since Mar 2009
84609 posts
Posted on 9/11/19 at 6:17 pm to
quote:

Where the frick did Trump say he wants negative rates? Bunch of fricking liars, the lot of you


quote:

The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt...


Ehh...
Posted by ShortyRob
Member since Oct 2008
82116 posts
Posted on 9/11/19 at 6:24 pm to
quote:


Where the frick did Trump say he wants negative rates

Why are you quoting me? I didn't make the assertion. I'm just in the thread to point out that nobody understands negative interest rates
Posted by ShortyRob
Member since Oct 2008
82116 posts
Posted on 9/11/19 at 6:25 pm to
quote:


Plenty of people buy fixed income investments for income. Negative yielding products are only useful for capital gains, not for income

Um. False

Sheesh
Posted by slackster
Houston
Member since Mar 2009
84609 posts
Posted on 9/11/19 at 6:33 pm to
quote:

Um. False Sheesh


True. The general public doesn't give a rats arse about currency hedging and other bond trading tactics that are used for negative yielding debt.

Mom and pop buy them for interest income. Don't be stupid.
Posted by ShortyRob
Member since Oct 2008
82116 posts
Posted on 9/11/19 at 6:35 pm to
quote:


Mom and pop buy them for interest income. Don't be stupid.

That's why SOME people buy bonds.

Most bonds are bought via bond funds.

In any case, one might buy a negative 1% bond in an environment where one thinks the alternative is worse just like one might buy a 1% you'll find when they think the alternative might be worse.

yes I realize that a negative yield is worse than stuffing it in your mattress but there are reasons to not stuff money in your mattress
This post was edited on 9/11/19 at 6:36 pm
Posted by slackster
Houston
Member since Mar 2009
84609 posts
Posted on 9/11/19 at 6:42 pm to
quote:

Most bonds are bought via bond funds.


Negative rates impact more than just US debt. They'll eventually trickle down into bank products too.

I appreciate that you understand there are reasons to buy negative yielding debt, but for the vast majority of Americans, it's impractical.
first pageprev pagePage 3 of 3Next pagelast page
refresh

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram