Hi Tom, RE: Negative Rates,
I see on the tube that the Japanese 10 year Bond now has a yield of -0.011%. Joining an ever growing list of negative rate bonds around the world. Of course this has lead to fears of another global banking crisis. For the life of me, who's stupid idea was this? Money should not be free to borrow, ever, never. Look at where all this global printing has got us. So if that isn't extreme enough, heck let's go negative. Are you kidding me? Our ten year was at 2.37% not 2 months ago, and it's 1.73% as I type this to you. Overseas money piling over here now driving our rates lower. Also looks like the sub-prime, and "DEEP" sub-prime loans on autos are once again at record levels. JMHO, but I don't think this ends well. Japanese rates go negative, and their market drops nearly 6%. So how's that working for them? It seems like we are all in a race to the bottom with all the printing. If I was a gov't in an emerging country, I'd electronically print it it up too, and shove it right out the door just like we and Europe does. We got married in 1981, home loan rates were 17 1/4 to 17 1/2 percent, flash forward to now and WOW! I can't believe all this has happened. In many ways, I think the higher rate environment was much better... Okay, I'm off my soapbox.. Best regards, Ken
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