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#Post#: 14305--------------------------------------------------
Negative interest rates?
By: Susan Date: April 12, 2019, 12:42 pm
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I read this article yesterday about an interview with Warren
Buffett that included this: “I think, now, there's still $11
trillion, at least, of government debt around the world that's
at a negative rate,” Buffett told Yahoo Finance’s
editor-in-chief, Andy Serwer. “So we've never seen it before.”
For example, the yield on Germany’s 10-year Bund is negative.
That means investors have to pay to hold government debt.
HTML https://finance.yahoo.com/news/warren-buffett-on-negative-interest-rates-and-low-inflation-144529579.html
Does anyone understand why in the world investors would pay to
hold German government debt? (or any other governments debt for
that matter.) Sounds crazy to me.
#Post#: 14306--------------------------------------------------
Re: Negative interest rates?
By: Truman Overby Date: April 12, 2019, 12:51 pm
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The Fake German will be here any second now to scold you, Susan,
for implying that there's anything wrong with anything connected
to Germany.
#Post#: 14324--------------------------------------------------
Re: Negative interest rates?
By: NealC Date: April 12, 2019, 3:07 pm
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Thank you for the article Susan, I try to read anything Mr
Buffet says. It will be a sad day when he and Charlie are gone.
#Post#: 14325--------------------------------------------------
Re: Negative interest rates?
By: SHL Date: April 12, 2019, 3:30 pm
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I‘ll have to look into this when I have more time, but the
Germany economy is one of the strongest in the world, if not the
strongest. They don‘t have a deficit in Germany. They post
yearly budget surpluses in the billions and are the envy of the
world in everything. They make the best cars, the best of
everything really.
This success is because they do everything right: world class
universal healthcare, generous retirement benefits, government
paid university education for all. Little to no crime. Gun
control, no ridiculous electoral college, no 2nd Amendment
nonsense. They get it right on all points, everything really.
And the reason they are successful is they don‘t have to deal
with American Republicans, and American Republicanism with all
its insanity.
#Post#: 14326--------------------------------------------------
Re: Negative interest rates?
By: SHL Date: April 12, 2019, 3:33 pm
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Oh, and don‘t listen to Jerry. He calls anything he doesn‘t like
„fake.“ Like if you don‘t like a news report, it‘s „fake.“
That’s as deep as the analysis goes. Boy, we‘ve all heard that
one before.
#Post#: 14328--------------------------------------------------
Re: Negative interest rates?
By: NealC Date: April 12, 2019, 3:37 pm
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Off the top of my head you would accept a negative return if you
think inflation was going to significantly erode your deposit.
But then Germany pays off its debt in Euros, so why not the
sovereign debt of another European country?
So you either think Germany is the only safe place in Europe, or
you think the Euro is going under and if you had a choice you
would rather be paid in Deuschte Marks. I cannot think of
another reason.
I read the article. Yahoo sucks. No depth, just clickbait.
#Post#: 14343--------------------------------------------------
Re: Negative interest rates?
By: SHL Date: April 12, 2019, 8:11 pm
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[quote author=NealC link=topic=964.msg14328#msg14328
date=1555101442]
Off the top of my head you would accept a negative return if you
think inflation was going to significantly erode your deposit.
But then Germany pays off its debt in Euros, so why not the
sovereign debt of another European country?
So you either think Germany is the only safe place in Europe, or
you think the Euro is going under and if you had a choice you
would rather be paid in Deuschte Marks. I cannot think of
another reason.
I read the article. Yahoo sucks. No depth, just clickbait.
[/quote]
I didn‘t vote your comment as dumb. This website is a bit odd in
this respect sometimes. And it won’t let me delete it. Sometimes
things work and sometimes they don‘t- incidentally, I agree with
you about Yahoo News. It‘s pretty low-brow stuff. I get more of
a laugh out of watching Jesse Peterson interviewing his guests
and just saying „Amazin“ when he doesn‘t know what else to
say...if you don‘t know who he is, just YouTube search him.
Hilarious. And what‘s even more hilarious is he‘s serious. (If
you don‘t know good old Jesse, just YouTube search him and plug
in Maxim Waters, whom he calls „the Wicked Witch of the West
with the Low IQ.“ And, he‘s in LA where I think she‘s from.)
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