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This page contains all of the posts and discussion on MemeStreams referencing the following web page: Investors demanding larger government deficits. You can find discussions on MemeStreams as you surf the web, even if you aren't a MemeStreams member, using the Threads Bookmarklet.

Investors demanding larger government deficits
by w1ld at 2:05 pm EST, Feb 10, 2012

And now investors want to take the next step: Negative interest rates. Last week, the group of bond traders that advises the Treasury on debt matters unanimously recommended that the Treasury allow investors to offer to pay the government for lending it money. You’d give the Treasury $10,000 now and get back $9,990 in a few months.


 
RE: Investors demanding larger government deficits
by Decius at 11:26 am EST, Feb 11, 2012

w1ld wrote:
And now investors want to take the next step: Negative interest rates. Last week, the group of bond traders that advises the Treasury on debt matters unanimously recommended that the Treasury allow investors to offer to pay the government for lending it money. You’d give the Treasury $10,000 now and get back $9,990 in a few months.

It sounds insane but when its a choice between various asset classes that are going to loose value - loosing less is better than loosing more. This isn't for pedestrian investors who can now open FDIC insured bank accounts that earn < 1% for up to 250k per bank. This is for institutionals who have to constrain losses in large "conservative" mutual funds that people have no choice but to invest in because their 401k only has 20 options.

Ironically signs are that equities markets are going to gain value in the near term.


 
 
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