Friday, August 13, 2010

More on the negative TIPs yield

The self evident blog argues that the negative TIPs yield is a rational response to the volatility in the "traditional" inflation hedge markets such as gold and real estate. In other words, investors are accepting no real return in return for stability, something which can't be found anywhere else.

The great one liner...

In short, the negative TIPS yield is a rational reaction to the lunatic casino that has infested essentially every market in the world.