Venkatesh Rao@vgr·Aug 27, 2016Replying to @pmarcahave you found an intuitive example of a transactional flow/loop that works with negative interest rates? still too abstract for me34
Sam Bhagwat@calcsam·Aug 27, 2016Replying to @vgr and @pmarcayou're thinking too micro, not enough macro. it's supply/demand, investment managers have $ allocation and can't buy cash, so..12
Venkatesh Rao@vgr·Aug 28, 2016Replying to @calcsam and @pmarcaI don't understand how that couples to negative interest rates. NPV of demand/supply or something?1
Sam Bhagwat@calcsam·Aug 28, 2016Replying to @vgr and @pmarcainterest rate = price of borrowing $ over time. sellers = money mgrs. buyers = investment opps. cur mkt clearing price < 0%12
Sam Bhagwat@calcsam·Aug 28, 2016Replying to @calcsam @vgr and @pmarcabefore now, people assumed that supply curve = 0 at r = 0%. turns out w/ professional money management, that's not the case24
Venkatesh Rao@vgrReplying to @calcsam and @pmarcathanks, now I know enough to successfully pretend to understand this so long as everybody has had a couple of drinks1:06 AM · Aug 28, 20165 Likes