If you had $500K in the bank, you wouldn’t spend $500k on a house & be broke after If you had 20k in the bank, you wouldn’t spend $20k on a car & be broke after But for some reason you have 30k, buy a 500k house You have $5k & buy a 20k car Credit made us forget common sense
-
-
Fair enough. I mean I still don't comprehend why folks accept negative-interest bonds.
-
Almost all of them are being bought by (a) central banks who conjure money out of thin air to buy them, (b) pension funds managers hamstrung by obsolete rules and objectives, and (c) people chasing the bubble, convinced they will be able to sell to the greater fool.
-
Many pension funds are not permitted to hold cash so they are forced into negative yielding bonds. Its pernicious.
-
Coercive regulation of pension funds is what makes it pernicious. Imagine how fast bad managers would loose customers in a free market.
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.