I wrote as much a couple of months ago that covid would come back based on variants seen in India. I had a distant relative die getting the variant even after being vaccinated. Immune response was weak in those over 80. The variants will keep pruning the weak.
If someone claims to be a COVID expert and also a climate expert, just run. I remember one of the climate chaos denial guys was also the tobacco expert some decades ago, who declared that smoking was not dangerous at all. So, a pulmonologist who also turned out to be a climatologist! I’m impressed! /s
Casual_Observer2020
2 years ago
2020-won.
Captain Ahab
2 years ago
I subscribe to the old school, where the interest rate is the price of money relative to risk. As rates approach zero, the price of money approaches zero. When money is worthless, all bets are off. The question becomes: when do people realize they have been royally screwed?
Further, there can be no recovery by Fed/Congress action because any significant increase in interest rates will crash stocks, bonds, and real estate; and with them go the banks, debt-driven companies, and the government, too, since it now depends on debt to function.
Cash deposits in the bank are guaranteed only up to a certain amount. T-Bills however are a direct obligation of the US government and will be paid in full.
T-bills are viewed as the “best” collateral and are the primary instrument used by money markets (and any anyone else who wants collateral). Money markets don’t actually keep “cash”. They take cash deposits and buy t-bills. Jeffrey is pointing out that the demand for t-bills has outstripped supply and is why dealers will pay big premiums for t-bills.
I was at a townhall for a government pension fund with $60 billion in assets. One retired teacher in her 80s suggested that the Fund shop around for better CD interest. Our hosts smiled and thanked her for the comment, like you could park a billion or two any day of the week in a CD insured for $250,000.
Eddie_T
2 years ago
I just locked in the cheapest 30 year money I’ve ever borrowed for investment mortgages. I’m probably going to refi all my mortgages other than the personal ones.
I’m not locked on the downside, so it could get better if treasury rates keep going down. But my best intel is that we are near the bottom on bond yields for the short run. I’m headed to the beach Friday, so I won’t close for a few weeks.
anoop
2 years ago
wait until the 3.5t stimmy passes.
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