Wednesday, August 11, 2010

Uh Oh. Negative real TIPs yields...

Felix Salmon talks today about negative real TIPs yields.

What does this mean? Well basically investors are happy to park money in TIPs just to keep pace with inflation. They are not actually earning a real return.
Why would investors do this? Perhaps there aren't any better places to put cash right now.

So overall this probably isn't the greatest news...