Tuesday, December 9, 2008

Cheap money

Because of unprecedented demand for safe assets, T Bills are being sold at negative rates. (See this Bloomberg.com article). In effect, people are paying the US government to store money. This can't be good. On the bright side, the loan to the auto industry isn't going to cost much in the short run!
at
Labels:

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

What's going on with inflation?

I recently posted an article on the Poole College Thought Leadership page titled: " What's going on with inflation?" .  This w...

  • Beanie Babies
    There are a lot of similarities between the boom and bust of the Beanie Baby market in the 1990s and booms and busts in financial markets.  ...
  • Doing nothing is an option
    Real options are common in business - they represent the value of being able to choose to do something in the future.  An example of a real ...
  • Does beta predict returns?
    Fama and French answer the age old question: do high beta stocks outperform low beta stock s?   Their answer is yes, but not by as much as t...