Best Posts in Thread: Officially Here: Negative U.S. Interest Rates

  1. Detroitgator

    Detroitgator Well-Known Member
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    It means, that while the "reach around" you are getting feels pretty good, you are getting fukked in the ass and made a slave and you don't realize it.

    How's that? ;)
     
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    • Detroitgator

      Detroitgator Well-Known Member
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      OK, bare with my tin foil hat...

      1. All the yields moving to zero is "apocalyptic."
      2. Some are already zeros.
      3. Fed will prop up the two that everyone watches like you've never seen before.
      4. Here's the tin foil hat: we are definitely going to negative interest rates from your bank. This means they will CHARGE YOU for any cash that is in an interest bearing account. So, if you have $100 in a savings account that was at 1% and that goes to -1%, they will charge you every month that rate like a bank fee and your $100 will decline every month you let it sit there.
      5. This is designed to make you move your dollars out of savings/CDs... and put it somewhere else. They hope that you will either spend it on schit or put it all in the one place providing a return, the stock market.
      Bottom Line: it means "NOT GOOD"
       
      • Taco Gratis

        Taco Gratis Well-Known Member

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        :lol:

         
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        • FireFoley

          FireFoley Senior Member
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          Interesting that this was the last post in this thread and quite apropos. I just read that the Taiwan 10yr Gov. paper hit an all time low of 42 basis points. This coming from the country who is lauded for handling the Kung Flu the best and whose economy is recovering. Well 42 basis points does not sound like recovery to me and Gold and Guns seem to be the play. StagFlation seems to be the outcome of this Centralized recipe, with a lot of "Stag" and a decent dose of "flation".
           
          • FireFoley

            FireFoley Senior Member
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            TINA (There Is No Alternative). This has been the narrative for over 10 year now @Taco Gratis. You are not wrong and starting in 2008 on, that was the Fed's entire goal; Inflate Asset Prices. But this particular situation where the world has been shut down has added a thorn that has not been there for the past 10 years. Many companies have not only suspended their dividends (with good reason), but many have been forced to cease their buybacks. Most every major company buys their own stock back in the open market every single day. There is a limit to how much they can buy in a day and a week, but they are usually the biggest purchaser of their stock. If you do any reading, buybacks are numero uno reason for most stocks price increases the past 10 years. There has been little to no organic growth. Fewer outstanding shares lead to higher EPS. These next however many quarters will be quite interesting especially if some of these companies continue not to purchase their own stock,
             
            • FireFoley

              FireFoley Senior Member
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              I am not overly political, but I believe that there are already plenty of ZEROS' on the right, the far right. :lmao2::lmao::lmao:
               

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